The Tax Cuts and Jobs Act of 2017 increased the child tax credit for all eligible children to $2,000. The Act also increased the refundable potion to $1,400. This means that even if you pay no income tax you still can take the benefit of the credit. Another good change was they increased the phase-out limitation from $110,000 of Adjusted Gross Income to $400,000 of Adjusted Gross income for Married Filing Joint returns. This means more taxpayers will be able to get the benefit of the credit in 2018 and forward.
As always, check with the tax professionals at Ketel Thorstenson CPAs for these and other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. KTLLP CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry.