Since we have dodged the bullet (for the moment) on the 401(k) issue, I think we will come out slightly ahead, maybe to the tune of 2 or 3 grand. BTW, has anyone figured out the $300 credits you can claim in the first six years?
what section is this in
I think OT is referring to the expanded nonrefundable family/child tax credits.
Basically, they're a patch to make it seem like the Republican tax plan isn't just stealing from the poor to give to the rich. The temporary tax credit makes it look like it's neutral or even slightly positive for poor people, but then the credit phases out. The long term plan here is to take from the poor, they're just delaying the onset of the taking.
Oh, good catch - I hadn't caught the Jan 1, 2023 expiration date on that. Ok, that changes my impact from 0 right now to sudden tax increase (thru loss of credits) in 5 years. Just as the youngest turns 17 and we are beginning FAFSA filing for him. It really won't be a good time for us to begin Roth conversions!
It's striking how often that ~$24k annual income level is an inflection point: new standard deduction for MFJ, rough point at which max EITC phaseout begins, 150% FPL for a couple (to stay off Medicaid), AGI cap for EFC = 0 (believe this one is $25k now).