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Parent Alert: Tax Cuts and Jobs Act (TCJA) May Impact You

Child-related tax benefits are undergoing important changes due to the Tax Cuts and Jobs Act (TCJA). 

•The TCJA increases the maximum child tax credit from $1,000 to$2,000 per qualifying child with the refundable portion increasing from $1,000 to $1,400. The upshot -- taxpayers who don’t owe tax can still claim up to a $1,400 credit.

•For taxpayers with modified adjusted gross income (MAGI) of$200,000+ (or $400,000 (MFJ) the child tax credit begins to phase out. However, this phase out more than doubles the present law’s range.

•A child tax credit cannot be claimed for a child without a Social Security Number by the due date of the parent’s tax return.

•The TCJA allows a new $500 nonrefundable credit for dependents who do not qualify for the child tax credit. Taxpayers can claim it for children who are too old for the child tax credit, as well as for non-child dependents.

Want to Learn More? Schedule a complimentary consultation: susan@easternplanning.com.

Source: www.HRBlock.com and https://www.hrblock.com/tax-center/irs/tax-reform/new-child-tax-credit/



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