• IRA Rollover
  • Impact our future through planned giving

    Impact our future through planned giving

    • Touch the lives of others while creating a lasting legacy
    • Find peace of mind through a wide variety of tax benefits
    • Help the University of Michigan achieve its goals for current and future generations
Text Resize
Print
Email
Subsribe to RSS Feed

Wednesday November 21, 2018

Washington News

Washington Hotline

Increased Child Tax Credit for 2018

In IR-2018-217, the IRS reminded taxpayers of the benefit of the increased Child Tax Credit. The Tax Cuts and Jobs Act doubled the Child Tax Credit from $1,000 in 2017 to $2,000 in 2018.

IRS Commissioner Chuck Rettig urged taxpayers to check their eligibility for the tax credit. He stated, "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. Tax reform changed the tax code significantly and doubling the Child Tax Credit is an example of how the changes impact taxpayers."

The $2,000 tax credit is available for children who are under age 17 on December 31, 2018. The child must be your qualified dependent and have lived with you for at least six months of 2018. He or she must have a valid Social Security Number by the end of this year.

With the increased standard deduction of $24,000 for couples and $12,000 for individuals, many Americans will owe little or no federal income tax this year. If you have little or no federal income tax and a qualifying child, up to $1,400 of the Child Tax Credit is refundable. You may file a tax return and obtain this refund even if you owe no federal income tax.

The Child Tax Credit phases out for couples or individuals with higher incomes. The phaseout starts at $400,000 for married couples filing jointly and $200,000 of modified adjusted gross income (MAGI) for individual taxpayers.

Published November 9, 2018
Print
Email
Subsribe to RSS Feed

Previous Articles

IRA and 401(k) Contributions in 2019

Your Social Security and Medicare Value

Small Business TCJA Tax Changes

Social Security Benefits Increase by 2.8% in 2019

October 15 Tax Extension Deadline

scriptsknown

The University of Michigan has 501(c)(3) non-profit tax exempt status; our federal tax ID number is 38-6006309.

Copyright © 2018 Regents of the University of Michigan
The University of Michigan Office of Development, 3003 South State Street, Suite 9000, Ann Arbor, MI 48109-1288

© 2018 Crescendo Interactive, Inc. PRIVACY STATEMENT
This site is informational and educational in nature. It is not offering professional tax, legal, or accounting advice.
For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional advisor.