The U.S. House Ways and Means Committee is continuing to move forward a wide-ranging tax package. The proposed Tax Relief for American Families and Workers Act extends some expired tax breaks for businesses and contains enhancements to the Child Tax Credit. It also has a provision that would reduce paperwork for some businesses. Currently, businesses have Form 1099 reporting requirements if they pay independent contractors and others $600 or more a year. Under the bill, the reporting threshold would increase to $1,000 a year for payments made after 2023, with annual inflation adjustments. Although the bill has some bipartisan support, it’s unclear whether it can pass in the current Congress.
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