Do you have children or dependents? Do you make above average income and cannot take the tax credit from prior years? If you answered “yes” to both questions, then I got great news for you. With the recently passed new tax law, you might be able to take advantage of the new and improved 2018 child tax credit.
Hello, this is Noel Dalmacio, your ultimate CPA at LowerMyTaxNow.
Here are three things you need to know about the new 2018 child tax credit:
Tax credit is doubled
Income range huge increase
Married filing jointly – $400K – $440K
Other filers – $200K – $240K
Other dependents’ credit
One thing I want to point out is that – this is a credit, not a tax deduction. While a deduction reduces your income, a credit reduces your tax dollar-for-dollar. So, for example, if you have a tax due of $2,000 for the year, and have a $2,000 child tax credit, your tax bill drops to zero.
To recap, here are the three things you need to know about the 2018 child tax credit: 1. The tax credit doubled, 2. Income range huge increase & 3. Other dependents’ $500 credit.
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Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.