Under tax reform, starting in 2018, each of your qualifying children may qualify for a Child Tax Credit of up to $2,000. That is double what it was in 2017.
These begin to be phased out at income levels of $200,000 (Single Households), $400,000 (Married Households.) This is a substantial increase which will benefit millions more households. The phase out income levels were $75,000 (Single Households), $110,000 (Married Households). This will make millions more households eligible for this significant tax credit.
If you were not eligible in the past, please contact me to see if now you will be.
Criteria:
- The child must NOT be older than age 16 at end of the tax year.
- Eligible “Child” relationships: son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always considered your own child.
- The child must not have provided more than half of their own support.
- You must claim the child as a dependent on your federal tax return.
- The child must be a U.S. citizen, U.S. national, or U.S. resident alien and you must provide a valid Social Security number (SSN) for the child by the tax return due date.
- The child must have lived with you for more than half of the tax year (some exceptions apply).
The Child Tax Credit is now refundable. That means that even if the tax credit exceeds your tax liability, up to $1,400.00 of the Child Tax Credit can still create a refund for you.
In the past, that did not happen.
In other words, now, even you have zero tax, the Child Tax Credit can create a refund. This is fantastic for many struggling families and for many middle class families who never were eligible before.
There is now a $500 non-refundable credit for people that qualify as your dependent, such as a parent, but are not your qualifying children.
As always, reach out to immediately if you have any questions regarding the Child Tax Credit or any tax, accounting or business topic.
Please reach out to me without hesitation with any tax, business or
accounting question, and to schedule a consultation.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
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ignoring your Phone Calls and Emails?
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Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
79 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
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