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Breaking Down the Tax Relief for American Families and Workers Act of 2024

The House Ways and Means Committee has revealed a bipartisan package to give tax relief by renewing specific previously expired programs. Still, it will be paid for by adjustments to the Employee Retention Credit.  

The Tax Relief for American Families and Workers Act of 2024 provides the following:

  • Restores 100% bonus depreciation for properties placed in operation after December 31, 2022, but before January 1, 2026.

  • Retroactively reinstates the option to deduct domestic research and experimentation expenditures, which must be capitalized beginning in 2022 under Section 174.  Many businesses observed significant adverse tax consequences from the obligation to amortize these expenditures rather than enable immediate deductions. Section 174 capitalization would only be postponed until 2026. Expenses incurred outside the United States would still be capitalized and amortized over 15 years.

  • Section 163(j), which deals with the restriction of the business interest deduction, would also be altered to allow depreciation and amortization back into the limit calculation, as was the situation before the 2022 tax year.  Because of the increase in interest rates, many taxpayers were forced to add back their interest expenses.

  • Changes the refundable element of the Child Tax Credit from $1,600 per qualifying kid to $1,800 per qualified child in 2023, $1,900 in 2024, and $2,000 in 2025, coupled with an inflation adjustment to the overall $2,000 total credit amount for 2024 and 2025.

  • Increase the Section 179D deduction maximum to $1.29 million, less the amount by which the cost of purchased assets exceeds $3.22 million. Both figures are adjusted for inflation for taxable years beginning in 2024.

  • Increases the threshold for information reporting on Forms 1099-MISC and 1099-NEC from $600 to $1,000, adjusted for inflation starting in 2024.

These policies are tremendously beneficial to taxpayers, but they may come with a hefty cost.  Under current legislation, taxpayers can make Employer Retention Credit claims until April 15, 2024, for 2020 and April 15, 2025, for 2021 claims. If approved, the Tax Relief for American Families and Workers Act will prohibit the filing of any ERC claims as of January 31, 2024.  There has been so much fraud in this sector that the IRS is concerned about more bogus claims by promoters. In addition to the new reporting date, people who make erroneous or misleading claims will face substantial penalties. Many eligible taxpayers have yet to register their ERC claims, and if your claim is already being processed, contact your provider to check on its status. 

File ERC Claims Before Jan 31

This is simply a draft bill. It has not been passed and is not final.  If it is, it will undoubtedly benefit taxpayers in various ways. Still, it may cause delays in submitting income tax returns since software must be re-written to adjust bonus depreciation calculations, interest restrictions, and the child tax credit.  Consider waiting a few weeks before filing your income tax return. However, if you have a pending ERC claim, submit it before January 31.

Every year, the most anticipated yearly task for everybody comes around: filing taxes. And one question that connects all of us, whether you’re an early riser or like the exhilaration of a last-minute sprint to the finish line.

As we embark on another fiscal journey, it’s crucial to stay informed about the significant tax dates that can impact your financial planning. Whether you’re an individual taxpayer, a small business owner, or a corporate entity, understanding key tax deadlines is essential for avoiding penalties and ensuring a smooth tax filing process. In this reference guide, we’ll cover the anticipated tax payments and the deadline for filing your federal income tax return in 2024.


When Are Taxes Due?

The deadline for submitting a federal income tax return is April 15, 2024. Due to state holidays, residents of Maine and Massachusetts will have until April 17, 2024. The deadline for filing is pushed to October 15, 2024, if you submit Form 4868 by April 15 to secure a six-month tax extension.

If you file at the last minute, the IRS will still accept your paper return as timely if it was postmarked, correctly addressed, and received by the deadline. For electronic filers, the government states that whether your return is filed on time depends on the date and time it is submitted inside your time zone.


State Income Taxes

There are a few exceptions to the general rule that state income tax deadlines coincide with federal deadlines. For instance, in Virginia, you have until May 1 to submit your state taxes. 

There even may be differences in the guidelines for filing a state tax extension. The most straightforward approach to find out when your state income tax is due and how to apply for a state tax extension is to contact your state’s tax agency.

Other 2024 tax dates 

These are some more 2024 tax deadlines, not all requiring filing taxes with the IRS.


The tax filing season has begun. Federal tax returns are typically accepted and processed by the IRS in mid- to late-January. The IRS will not send your refund until at least mid-February if you apply for certain credits, such as the earned income tax credit or the extra child tax credit. This applies regardless of how early you file.

The Free File launches. The IRS offers free tax preparation and filing software to taxpayers who earn less than a specific threshold in collaboration with well-known software businesses. Usually, in mid-January, the Free File program opens and accepts returns.

January 16

Fourth quarter estimated tax payments are due. The deadline for paying anticipated taxes on income generated from September 1, 2023, to December 31, 2023, is today. generally pertains to self-employed taxpayers or withholding falls short of their whole tax burden. 

January 31

deadline for Form W-2. By this date, employers must mail or provide W-2 forms to workers employed by them in 2023.

1099 due dates. Certain information returns, including the 1099-NEC, 1099-K, and 1099-INT, must be issued or mailed by January 31 by IRS regulations. This implies that, for instance, you should anticipate receiving a document in your email or mail describing your profits around this time if you were a freelancer and made $600 or more in non-employee earnings in 2023 or if you received a specific amount from interest. It will be necessary for you to refer to when you file your taxes.

February 15

Deadline for tax-exempt status on Form W-4. This is the deadline for filing a new Form W-4 with your employer if you were exempt from tax withholding in 2023 and want to recover the exemption for 2024.

1099 deadlines (ext. Another set of 1099 deadlines: by this date, receivers must receive informational reports such as the 1099-Bs (for income from the sale of specific stocks) and some 1099-MISC forms. Information returns are covered in further depth here by the IRS.

April 15: TAX DAY

date for submitting federal taxes. This is the deadline for submitting your taxes to the IRS. This is also the last day to submit a tax extension application. Recall that a tax extension extends your time to file your return; it does not let you pay your taxes. You have until April 15 to pay any outstanding taxes, even if you file a request for an extension.

Deadline for IRA and HSA contributions. The deadline for contributing to a Roth or regular individual retirement plan or your health savings account for the 2023 tax year. In 2023, the maximum contribution to an HSA is $3,850 for single coverage and $7,750 for family coverage. In 2023, the maximum contribution to an IRA is $6,500 ($7,500 if you are 50 or older).

estimated first-quarter tax liability. Today is the deadline for estimated tax payments on income received during the first quarter of the year, which runs from January 1, 2024, to March 31, 2024. 

June 17

Taxes owed during the second quarter, estimated. Today is the deadline for estimated tax payments on income received during the second quarter of the year, which runs from April 1, 2024, to May 31, 2024.

US citizens residing overseas have a tax deadline. A two-month automatic extension is provided to taxpayers who reside or work outside of the United States from April to submit their taxes on time. Taxes for this group are payable on June 17 of 2024.


The deadline for filing a 2020 tax return. This is usually the last month to file a tax return to get a refund for a three-year prior-year return.

September 16

Third quarter estimated taxes owed. Today is the deadline for estimated tax payments on income received during the third quarter of the year, from June 1, 2024, to August 31, 2024.

October 15

deadline for tax extensions. If you request an extension by April 15th, you will have until October 15th to complete your taxes. If you miss this date, the IRS will consider your return late, and penalties will start to accrue.

Deadline for contributions to Solo 401(k), SEP, and Simple IRAs. The deadline for finalizing contributions to self-employment retirement plans for the 2023 tax year is October 15 for individuals who have set up any of the aforementioned plans and applied for an extension in April.

December 31

Deadline for 401(k) contributions. The deadline for making an eligible contribution to an employer-sponsored retirement plan, such as a standard or Roth 401(k), is usually December 31. The maximum contribution for the 2024 tax year is $23,000 ($30,500 if you’re 50 or older).

RMD expiration date. If you must take RMDs, you have until December 31 to comply.

Deadline for charitable contributions. This is the final day to itemize deductions for the 2024 tax year if you wish to lower your taxable income by donating to charity.

When are October taxes due?

Your federal tax return is due on October 15, 2024, if you sought a tax extension by April 15. To be eligible for the extension, Form 4868 must be filed by April 15th, tax day. You can file for an extension, but it does not allow you an extension to pay your taxes. All taxes owed, or a reasonable approximation of them, were payable before the deadline in April. Tax bills due after April 15th are subject to interest and penalties, which accumulate until the outstanding amount is settled.