The IRS states that under the newly revised Child Tax Credit (CTC), more families will be able to get more money. Does this include you? How much is “more”??
The Tax Cuts and Jobs Act (TCJA) doubled the maximum CTC, increased income limits to qualify for the credit, and also changed the identification number requirement for 2018 and the following years.
To break that down…
Child Tax Credit (CTC) Increased
Having higher income limits means that now MORE families are eligible to claim the CTC. This credit starts to phase out for couples who file $400,000 adjusted gross income and $200,000 for those who do not file jointly. This has gone up quite a bit since 2017, where it used to be $110,000 for married couples and $75,000 for single filers.
If your child is younger than 17 at the end of the tax year, you can claim your child as a dependent if they live with you more than 6 months out of the year. You can claim up to $2,000 per kid, which has doubled from $1,000 in 2017.
You may be eligible to get a refund even if you don’t owe any tax, as up to $1,400 of the credit can be refundable per child.
New Smaller Tax Credit for Other Dependents
If you have children that are dependent on you over 17+ years of age, or have other relatives supported by you at home, you may qualify for this new tax credit. You can claim up to $500 per dependent who does not qualify for the CTC.
If you have any questions regarding the revised Child Tax Credit or the New Other Dependent Credit, just ask the #GoldenGirls.
(Tax News Source: IRS.gov)