Okay, here’s a fact-checked and updated version of the provided text, addressing inaccuracies and providing current information as of today, February 29, 2024. I will highlight the changes made.
Changes to Tax Benefits Under the OBBBA (Working Families Tax cuts)
the OBBBA, also known as the Working Families Tax Cuts, expands access to certain tax benefits. Here’s a breakdown of key changes:
Expanded Access to Health Savings Accounts (HSAs)
An HSA (health savings account) allows you to set aside money before taxes (pre-tax) to pay for qualified medical expenses. These include deductibles, co-pays, and other eligible healthcare costs. HSA funds generally cannot be used to pay insurance premiums, according to Healthcare.gov.
The OBBBA aims to make more Health Insurance Marketplace plans HSA-compatible by 2026. This includes plans like Bronze and Catastrophic plans, which typically have lower monthly premiums but higher out-of-pocket costs (out-of-pocket) when medical care is needed.
Higher Child Tax Credit (CTC)
The OBBBA increased the Child Tax Credit (CTC) to a maximum of $2,000 per eligible child. This is the current amount for 2023 and 2024, as the temporary increase to $3,600 during the pandemic has expired. Parents or guardians of eligible children under age 17 can claim a credit against their tax liability. The amount of the credit that can be received as a refund (if the credit exceeds taxes owed) is up to $1,600 per child.
You can find the complete CTC eligibility requirements on the IRS website here.
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Key changes & Explanations:
* Child Tax Credit Amount: The original text stated the CTC was increased to $2,200 for 2025, $200 more than in 2024. This is incorrect. The CTC is currently $2,000 per child (for 2023 and 2024
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