Raising children is one of the most important responsibilities a person can have. It’s also one of the most expensive. For many years, families have depended upon child tax credits to help reduce their burden with the IRS. But with the new tax laws now in effect, you may be wondering if these benefits have changed. If you haven’t yet gone to a tax preparation services provider, you may want to get a general idea of what your returns will look like this year. Martinson & Carter CPAs has this overview of how child tax credits have changed under the new tax laws.
Credit amounts & refunds
Under the new tax reform, there has been an increase from $1,000 to $2,000 for the child tax credit. You must meet the following requirements to be eligible:
- The child was 17 or younger as of December 31, 2018.
- The child lived with you, the taxpayer, for a minimum of six months throughout 2018.
- You, the taxpayer, will claim the child as a dependent on your returns.
Income thresholds & phase-outs
As long as your family earns at least $2,500 within the tax year, you will be able to claim this credit. However, if your family earns $200,000 (or $400,000 if you are married filing jointly), the child tax credit will not apply to you. If you are unsure of where your income falls on this scale or if you qualify for the credit, please talk with a CPA or other tax preparation professional.
Visit a professional tax preparation service
Working with a professional tax preparer is the best way to determine if you may claim the child tax credit. If you can’t, there may be other credits or deductions that you can claim. Working with a CPA on your taxes is the best way to make sure you’re claiming everything you can. If you need tax preparation services in the Rock Hill, SC area, contact Martinson & Carter CPAs for help with your personal income taxes.
