Politics & Government

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.

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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.  


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