BOSTON — If you’re part of a working family, if you have children or if rent in Massachusetts this tax reform package means there’ll be more money in your pocket.
“I’m all for it I think it sounds fantastic,” said John Bostrom who lives in Boston.
Bostrom is a new dad who was his young son Raphael in his arms. And he is thrilled that the child tax credit would increase as a part of the new compromise tax reform package.
“The child independent tax credit is really a stand out for working families and families with young children. So that’s going to make a significant difference to families,” said Deborah Cartisser who is a Senior Wealth Advisor at Twelve Points Wealth Management.
The child tax credit would increase starting in:
- 2023 - from $180 to $310 per child
- 2024 – it jumps to $44o per child
“It sounds great! I think any more tax credits for kiddos I’m in favor of as a new dad. It’s something I am totally in favor of for sure,” said Bostrom.
But that’s not all, the estate tax threshold would also double.
It would go up from $1 million to $2 million.
“It doesn’t take much in the state of Massachusetts to be up around a million dollars. All you need to do is own a home. This isn’t just for the ultra-wealthy. This is for working class families who’ve owned a home for many years,” said Cartisser.
And if you rent you’ll also get a break from the rents that are thru the roof in Massachusetts
Rental deduction would up from $3,000 to $4,000.
And investors would also get a break. The capital gains tax will drop from 12% to 8.5%.
“Not penalizing people who are making investments and trying to save their money and invest it wisely is significant,” said Cartisser.
The House is expected to vote on the measure Wednesday, and the Senate on Thursday. It’s expected to be on the Governor’s desk by the end of the week.
This is a developing story. Check back for updates as more information becomes available.
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