**MASSIVE STIMULUS CHECK Deadline Shortly!** Business & Child Tax Credit.

hey a lot of folks are wondering what

the latest is on this $78 billion deal

is this actually going to delay the

government shutdown and what's in it for

that $78 billion deal for you well

there's a lot first and foremost if you

have not yet applied for the employee

retention tax credit it might be going

away Way sooner than expected so

basically if you think you're eligible

and you want some free money you might

want to consider applying probably

before January 31st now at the moment

the IRS has stopped processing these but

they're on a tentative pause as they

investigate fraud in the employee

retention tax credit so point is I don't

know if even at this point you'll still

be able to get in but you probably

nearly definitely won't be able to get

in after January 31st if this new $78

billion deal goes through so let me just

quickly catch you up with the employee

retention tax credit since there are

probably many of you who are or business

owners here and if you're not it's just

worth knowing about this before we get

to talking about the child tax credit in

the other updates if you are a business

that had payroll in 2020 and

2021 you're eligible for a tax credit if

you meet one of three conditions

initially the conditions had to do with

you showing a decline in income in any

part of 2020 itself or the first 3

quarters of 2021 one however they loosen

that uh and so now those two conditions

expanded to a third condition that is

either 2020 or the first three quarters

of 2021 they expanded that to basically

say or your business was shut down

during 2020 or the first three quarters

of 2021 which basically kind of made

everybody be like uh yeah yeah I was

subject to the shutdown so pretty much

every person who has payroll has been

getting beat up by companies that are

basically calling you up going hey you

want to get some free tax credit give us

50% of the tax credit we'll help you get

the tax credit and if you get it you

just give us 50% as part of us getting

that for you because it's money you

didn't even know you were potentially

eligible for right so there are a lot of

companies doing that and it's not that

hard to apply for it I mean quite

frankly you could probably just Google

the IRS form by typing in employee

retention tax credit with the word or

letters a the a and the s and then well

yeah no kidding surprise surprise you

can get the whole IRS forms and guides

on exactly how to fill out the form and

knock this out but the point is in 2021

this actually had a pretty big number

attached to it you were able to get up

to 70% of employees qualified wages up

to

$28,000 per employee in

2021 which is wild because that means if

you paid an employee a qualifying

employee

uh let's see if you paid them $40,000 a

year or more you could get 28 grand

towards their payroll in

2021 per employee okay that's a lot of

potential money again go to the employee

retention tax credit form uh at the IRS

directly and you could see the

eligibility checklists they have you

could see the forms for actually filling

this out all you have to do is Google uh

IRS employee retention tax credit and

they have a full breakdown for you here

on all the eligibility the details so

take a look at this if you're interested

in that the point is the $78 billion

deal that we're talking about now will

probably kill the employee retention tax

credit after January 31st they're doing

that because they think they'll save

about 70

billion and now while they save $78

billion Congress is going to pull the

usual and they're going to spend $78

billion yes that's kind of exactly what

they're trying to do uh the $78 billion

deal would enable increasing the child

tax credit

refundability so I want to be really

clear about this the child tax credit

for 2021 got boosted from

$2,000 to

$3,000 up to another $600 if your child

was under six right okay so the credit

was 2,000 went to 3,000 to 3600 in 20121

that was 2021 that's gone that $2,000

was also a doubling of what the child

tax credit used to be which was $1,000

Ivanka Trump got credit for kind of

doubling that child tax credit the point

though is that now there's talk about

increasing the refundability of that tax

credit it's basically a way of saying

look if you owe $22,000 in taxes and you

have one child and you meet the income

thresholds boom you pay zero in taxes

but what happens if you owe zero in

taxes and you're supposed to get that

$22,000 tax credit well if it's

non-refundable you don't get it you lose

it it evaporates well this plan would

expand the

refundability uh for that child tax

credit now I broke all of these phase

outs and the details down because

they're a little hard to follow uh out

on ec.com remember just go to ec.com you

can see all these details uh yourself

and then you can do your further

research on this so anyway uh the

refundability aspect would grow the

refundability is expected if this bill

passes which it has not passed yet is

expected to grow to

$1,823 19 and 24 and 20

2025 with a possible inflation bump of

the tax credit itself to $2,100 in 2025

so the refundability portion uh would

not only remain at $1600 but also start

slowly bumping up so it really helps the

lowest of income individuals who are not

paying that much in taxes and they'd

basically be getting a stimulus check uh

for money that they're not owing in

taxes if they meet the income criteria

which the income criteria the phase outs

over here roughly less than 75k for the

full benefit if you're single 112.5 head

of household 150 for joint filers uh and

uh then that phases out or reduces by

$50 of a credit for each 1K of come

you're over that so it's not a hard drop

off at 75k single it slowly goes down

basically you're down 250 bucks on it if

you're at $80,000 of income so on and so

forth so anyway expanding this is coming

at the cost of cutting that employee

retention tax credit put some more

history on here and then some other tax

breaks that are expected to come in

expanded tax breaks for Taiwan basically

treating them under uh some more

preferential uh tax treaties the

expansion of disaster tax relief

lowincome housing tax credits and

potentially expanding the 179 deductions

for machinery and equipment and certain

business interest expenses that were

limited some of these we don't have all

of the details yet but we're looking for

retroactive tax benefits that could hit

in

20123 uh that is I know we're in 2024

now but it could apply to the 2023 tax

return so what I always like to do is I

like to have like one notepad where I

put like reminder for 2023 taxes and

then I just like to put little notes

down so if I'm a business owner I'm like

talk to CPA about employee retention

credit now you want to do that before

January 31st but then you'll also want

to look and see how did 179 deductions

change some deductions for example if

you were like insane and you decided to

buy a plane in 2022 you could get a 100%

of a deduction on it in 23 that went

down to 80% and in 2024 I think that's

down at 60% now I think some of these

are going to get bumped back up to 100%

so we don't know all of the details yet

because this is just sort of like no

taking we don't have the full bill yet

uh from from what's being talked about

in the halls of Congress uh along with

potentially better tax benefits for

research and uh uh and development tax

credits maybe being able to fully deduct

some of the R&D expenditures rather than

writing them off or appreciating them

essentially over 5 years so some

expanded benefits as well it's also

worth marking your calendar for January

19th that's this Friday and February 2nd

because both of those are the current

government shutdown dates we went for

this weird laded approach when Johnson

took over uh in uh as the speaker of the

house and uh right now we've got Chuck

Schumer and Johnson and basically

congressmen and women posturing to kick

this down the road to no not actually

passing a budget like you would expect

Congress to actually do their job but

instead delaying this just to March 1st

and March 8th so that gives you an

update on what's going on with this talk

about the child tax credit stimulus as

well as the employee retention tax

credit if you found this helpful

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watching and we'll see you in the next

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goes congratulations man you have done

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to you Kevin PA financial analyst and

YouTuber meet Kevin always great to get

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