Senator Charles Grassley (R-IA) has introduced legislation that would index certain tax benefits to adjust for inflation. The Family and Community Inflation Relief Act would help parents by adjusting the Child Tax Credit and the Non-Child Dependent Credit’s amounts and phase-out thresholds for inflation. Additionally, the bill would provide relief to college students by adjusting for inflation education-related tax benefits, including the American Opportunity Tax Credit, the Lifetime Learning Credit and the student loan interest deduction. Grassley said his proposal includes a one-year extension of the current cap on the state and local tax (SALT) deduction to pay for the inflation relief.
