We still have a long way to go before President Joe Biden’s Build Back Better plan becomes law. But there are several things advisors may want to do before the end of the year that could benefit their clients if all 50 Democratic senators finally get on the same page to get the plan over the finish line, according to Jeffrey Levine, Buckingham Wealth Partners director of advanced planning.
“From an advisor’s perspective, in terms of what is the single provision that is most likely to impact the greatest number of your clients — not the greatest impact, but the greatest number of your clients — it is probably the Child Tax Credit,” he said Tuesday, during a Kitces.com webinar.
That is because the Child Tax Credit would be sticking around for 2022, along with monthly advance payments that, as of now, would be $250 per child aged 6 through 17 and $300 per child aged 0 through 5, the same as 2021.
The fact that it is fully refundable is “quite significant for a lot of families,” especially those with three kids or more under 6 because that’s more than $10,000 of federal tax credit, and many people don’t even have a tax bill over $10,000.
See the gallery above for Levine’s top 10 end-of-year planning tips for advisors.