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 portion 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, consult with your tax professional at Ketel Thorstenson about these or other tax matters because each situation is different. Don’t navigate the difficult and ever changing tax codes and legislation on your own. Ketel Thorstenson CPAs and tax professionals receive advanced training and continuing education all year long to keep our service on the forefront of the tax industry. Call us today for guidance on tax planning, tax return preparation, and/or Tax Reform (the Tax Cuts and Jobs Act) affects or questions.