Tax Reform Series 18 – Child Tax Credit

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

Detailed Analysis of Child Tax Credit

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