More families will be able to get more money under the newly-revised Child Tax Credit, according to the Internal Revenue Service.
This is the third in a series of reminders to help taxpayers get ready for the upcoming tax filing season. Additionally, the IRS has recently updated a special page on its website with steps to take now for the 2019 tax filing season.
The Tax Cuts and Jobs Act (TCJA), the tax reform legislation passed in December 2017, doubled the maximum Child Tax Credit, boosted income limits to be able to claim the credit, and revised the identification number requirement for 2018 and subsequent years. The new law also created a second smaller credit of up to $500 per dependent aimed at taxpayers supporting older children and other relatives who do not qualify for the Child Tax Credit.
“As we approach the 2019 tax-filing season, I want to remind taxpayers to take advantage of this valuable tax credit if they are eligible to claim it,” said IRS Commissioner Chuck Rettig. “Tax reform changed the tax code significantly and doubling the Child Tax Credit is an example of how the changes impact taxpayers.”
Here are some important things taxpayers need to know as they plan for the tax-filing season in early 2019:
Child Tax Credit increased
Higher income limits mean more families are now eligible for the Child Tax Credit. The credit begins to phase out at $200,000 of modified adjusted gross income, or $400,000 for married couples filing jointly, which is up from the 2017 levels of $75,000 for single filers or $110,000 for married couples filing jointly.
Increased from $1,000 to $2,000 per qualifying child, the credit applies if the child is younger than 17 at the end of the tax year, the taxpayer claims the child as a dependent, and the child lives with the taxpayer for more than six months of the year. The qualifying child must also have a valid Social Security Number issued before the due date of the tax return, including extensions.
Up to $1,400 of the credit can be refundable for each qualifying child. This means an eligible taxpayer may get a refund even if they don’t owe any tax.
For more information, see Publication 972, Child Tax Credit, available soon on IRS.gov.
New Credit for Other Dependents
A new tax credit – Credit for Other Dependents — is available for dependents for whom taxpayers cannot claim the Child Tax Credit. These dependents may include dependent children who are age 17 or older at the end of 2018 or parents or other qualifying relatives supported by the taxpayer.
During the upcoming tax-filing season, the IRS urges taxpayers to use the agency’s Interactive Tax Assistant to see if they qualify for either of these credits. To find out more, visit IRS.gov.
Thank Hashem [G-D]
Fish for Shabbos!
Thank you President Trump
Please also note that all the exemptions were wiped out and the deductions were extremely limited.
Thank you president Trump if I was making millions, but please don’t take half a story
Please explain yourself how the average Lakewood family won’t benefit from this. Thank you Trump
first of all Hello is absolutely correct . for me for instance as a senior citizen the taxes will go up. But for young families with low income and kein yirby children under 17 the refund will get much much bigger, thats the good news, Bubbie Zelda income tax specialist. Good luck. P. S. although my income is low I will lose the personal exemption. thats why my tax liability will get higher.
They should stop taxation of SS benefits too.
Every person’s income is decreed and fixed on Rosh Hashana. It may come this way or that, but don’t worry! It will come. Thank you Hashem, and thank you President Trump for being a good shliyach and removing many obsticles that stood in the way of a thriving economy.
social security benefits is not taxed for everybody . only when your income reaches a certain amount. . ON the other hand unemployment is taxed regardless of income, BY the way neither S S or unemployment is taxed to N. J. thats the partially good news,