Plain Language of Change:
- The child tax credit is expanded for tac years 2018 until 2025
- The credit amount is increased to $2,000 per qualifying child
- The credit begins to phase out at $400,000 for married filing joint and $200,000 for all other filing statuses
- The credit is reduced by $50 for every $1,000 of modified adjusted gross income above the threshold amount
- A taxpayer may claim $500 for each dependent who is not a qualifying child
- For tax years 2018 until 2025, 15% of the earned income in excess os $2,500 is refundable to the extent the child tax credit exceeds the taxpayers tax liability
Cordasco & Company PC is a boutique CPA firm specializing in federal and state tax issues. We provide customized tax and accounting services specifically designed to help our clients capitalize on the rapidly changing tax and accounting environments.