The Tax Cut and Jobs Act substantially improved the Child tax credit and introduced a brand-new credit for dependents. The credits effective for year 2018 so be sure to factor these into your tax filings for 2018. Here is a summary of both credits:
The Child tax credit is $2,000($1,400 refundable); phaseout of the benefit of this credit begins at $200,000 for single filers ($400,000 Married Filing Jointly). Qualifying children eligible for this credit are children under age 17.
The Family tax credit is a $500 nonrefundable credit for dependents other than qualifying children; phaseout at $200,000 for single filers ($400,000 Married Filing Jointly).
The credit applies to the following:
- A child under age 19
- A full-time student under age 24
- A disabled child of any age
- Other qualifying relative which include a U.S. citizen, U.S. national or U.S. resident.A child that is ineligible for the full $2,000 credit because he/she does not have an SSN but does have an ITIN issued by the IRS can qualify for this $500 instead.
These credits are in effect through December 31, 2025.
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