Parents and Taxes: How the new child tax credit bill affects you.
Great News for Parents and Their Taxes.
In January 2018 a new child tax credit bill was passed. I’m talking HUGE changes! If you have any children then you need to listen up. I hope you’re ready to talk money!
Your child tax credit has been doubled!
Hold up! Did you say DOUBLED?
Yes ma’am, I did!
In previous years your child tax credit was only $1,000, but this year the new bill has pushed that up to $2,000!
Now, before you get too excited I need to make a couple of things clear:
- Your child must be 17 years old or younger at the end of the year to qualify.
- Most of this credit is non-refundable. Meaning it will only help take your taxes owed to zero. But don’t worry! In this new bill they’re also allowing for MORE of the credit to actually be refundable. Which means more money in your pocket if you have any credit left over! Woo hoo!
You may qualify this year even if you haven’t in previous years!
On top of all of this, they’re also raising the max amount of money earned per year (for single and married households) to qualify for this credit. That means even if you’re still making the same amount (or more) as last year, you may actually qualify for this credit now!
Here’s a quick guide¹ to the new maximum adjusted gross income (AGI) to qualify for the credits! If you fall between two of these – your credit is reduced by $50 for every $1,000 you exceed.
|Tax Filing Status||Max AGI for Full Credit||AGI Where Credit Disappears|
|Married – Jointly||$400,000||Over $440,000|
|Head of Household||$200,000||Over $240,000|
|Married – Separately||$200,000||Over $240,000|
If you have any questions on what I covered here, please feel free to shoot me a message or an email! I love hearing from my readers!