Latest News Debt Ceiling Deal Passed, Averting Government Debt Default. Find Out What It Means to You Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Jun 2, 2023 - [Updated Aug 7, 2023] 2 min read On June 1, 2023, Congress passed the Fiscal Responsibility Act, averting a first-ever government debt default. The bill includes a two-year suspension of the debt ceiling now set at $31.4 trillion which will allow the government to continue paying for things like social security payments and veteran benefits. You may be wondering, “What else is included in the debt ceiling deal and how does it impact me?” Don’t worry we have you covered. Here are some key measures in the debt ceiling bill: Ends the freeze on student loan payments. In November 2022, the Biden-Harris Administration extended the pause on student loan payments to 60 days from June 30, through August 2023, following the block on Biden’s student loan forgiveness program. Under the debt ceiling bill, if you have a federal student loan you will need to resume starting on September 1, 2023 and payments will be due starting October 2023. Once you start making payments, you will once again be paying any student loan interest so remember at tax-time you can deduct student loan interest up to $2,500 to increase your refund or reduce what you owe. Changes to SNAP requirements. The debt ceiling bill includes additional work requirements for certain individuals who are eligible for Supplemental Nutrition Assistance Program (SNAP) formerly known as the Food Stamps Program. Beginning in 2023, adults 50 to 54 years of age with no kids living in their home will have additional work requirements in order to get food stamps. The bill also expands SNAP access for veterans and those experiencing homelessness. Cuts IRS funding. The Inflation Reduction Act included $80 billion in IRS funding, however the debt ceiling deal reduces some of the funding available to the IRS. Still need to file your 2022 taxes? There’s no need to wait. You may have a refund coming and since a government shutdown was avoided, the processing of your return and tax refund will not be held up. The IRS issues tax refunds within 21 days or less of acceptance if you e-file with direct deposit. Even if you don’t have a refund coming, TurboTax can help you lower what you owe. You can come to TurboTax and hand your taxes over to a TurboTax Live Full Service tax expert who can do your taxes in one video meeting while the tax expert prepares your taxes. File now Check back with the TurboTax blog for more up to date information regarding the debt ceiling deal and other breaking news. Previous Post IRS Extends Tax Deadline for Storm Victims in Florida Next Post Understanding the Hidden Taxes and Fees Associated with Airline Travel Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 11 responses to “Debt Ceiling Deal Passed, Averting Government Debt Default. Find Out What It Means to You” This is helpful and could be more so with a bit more information on the subjects you addressed. For example I tell us if income amount raised for allowing us to deduct student loan interest. Because my income was a certain amount I couldn’t deduct interest I paid. Reply Thank you for this. I agree with others. This format is easy to read and understand. Reply Very informative and easy to comprehend, thanks for this vital information. Reply Requiring more work for ages 50 to 54 to receive SNAP, is like requiring babies to use fewer diapers. They’d like to do it but opportunities are limited. Reply There are jobs all over the place’n Reply Thank you for the update Lisa. Very helpful. 🙂 Reply No education bills just medical and the time spent waiting for surgery and not working Reply Thanks for the update Lisa. It was very interesting! Rob V. Reply How much was IRS funding reduced? Reply I find this format information easy to understand and very helpful. Reply I second that! 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This is helpful and could be more so with a bit more information on the subjects you addressed. For example I tell us if income amount raised for allowing us to deduct student loan interest. Because my income was a certain amount I couldn’t deduct interest I paid. Reply
Requiring more work for ages 50 to 54 to receive SNAP, is like requiring babies to use fewer diapers. They’d like to do it but opportunities are limited. Reply