Virginia House Bill HB396

Virginia 2024 Regular Session

• Introduced: 1/8/24
• Refer: 1/8/24

Caption

Income tax, state; birth of dependent household member tax deduction.

Impact

The bill is expected to have implications for individual taxpayers' finances, particularly those welcoming new children or dependents. It introduces an additional deduction that could potentially shift tax burdens, thereby providing taxable income relief for families faced with increased expenses due to raising children. As such, the legislation is positioned to not only ease the immediate financial strain associated with childbirth but might also encourage family growth by making parenthood more financially manageable.

Summary

House Bill 396 introduces a new tax deduction for Virginia taxpayers following the birth of a dependent household member. Beginning with taxable years starting on or after January 1, 2024, qualifying taxpayers will be able to deduct $1,000 if they are married and filing jointly, or $500 if filing as an individual. This legislative change aims to provide financial relief for families adding new members, promoting overall fiscal well-being among households during significant life changes.

Contention

While the bill seeks to support families, it may lead to discussions about its fiscal impact on state revenues. Opponents may argue that while such deductions are beneficial for families, they can reduce the overall tax base for the state, potentially hindering funding for public services. Therefore, stakeholders may debate whether the long-term benefits of incentivizing childbearing will outweigh the short-term costs associated with reduced state income from the tax deductions.