Thousands of Massachusetts Families Would Be Affected by Federal 'Fiscal Cliff'
A study finds that Bay Staters will pay more if the child and college tuition tax credits expire.
More than half a million Massachusetts families will pay more in taxes if the federal government doesn't reach an agreement on the tax code by the end of the year, a study reported in the Boston Globe found.
The child tax credit is set to expire if Congress doesn't reach a deal. The tax credit affects 562,000 lower- and middle-class familes, currently saving each about $1,000 a year.
Another group of tax credits set to expire includes college tuition credits, an increase that would affect 217,000 families, according to the story.
Small businesses would be affected if the federal government falls off the "fiscal cliff," too. If no deal is brokered, next year these businesses will only be able to claim $25,000 in deductions on new investments instead of the $250,000 deduction they now enjoy.