For more information on income taxes, see if your state will send a tax refund check this fall and find out if you need to pay taxes on forgiving your student loan debt. Inflation adjustments increase a wide range of tax exemptions and deductions, including annual and lifetime tax exclusions, the exclusion of foreign earned income and the tax limit for children, or the amount of unearned income a child can earn before paying taxes. To learn more about the tax changes, learn how the IRS must pay more interest on the money it owes you and the new tax laws on income earned through Venmo or other online payment services. These changes in the COLA are designed to eliminate the expansion of the tax category, in which inflation creates an increase in income taxes without an increase in real income.
In the absence of an expanded federal child tax credit, several states have taken steps to replace some of that missing money with their own additional child tax credits.
