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August 3, 2018
Every parent knows that raising a child comes with many joys and difficulties. Those sleepless nights become a distant memory as you watch your child grow, mature, and flourish year by year. Every parent also knows that raising a child comes with a financial cost. Thankfully, the IRS understands that burden and has given taxpayers the ability to claim a tax credit for 2018.
With the new Tax Cuts and Jobs Act, personal and dependent exemptions will no longer be available to taxpayers. However, they’re adjusting the Child Tax Credit to compensate for the removal of the dependent exemptions. Here is a list of the following changes to the Child Tax Credit:
A “qualifying child” must:
In short, if you’re raising a “qualified child” and your adjusted gross income is not over the threshold, then you should expect to receive the full $2,000 credit per child.
If you ever have any questions about the credit or are unsure if your child is a “qualifying child,” feel free to give us a call!