For qualifying dependent children:
Beginning in 2018,
the Tax Cuts and Jobs Act of 2017 (TCJA) doubles the Child Tax Credit to $2,000
per child under age 17. If this and other credits reduce your tax liability to
zero, the unused portion of the Child Tax Credit, up to a maximum amount of $1,400
per child, is refundable.
The TCJA also makes
the Child Tax Credit available to more families than in the past.
Under the new law,
the credit doesn’t begin to phase out until adjusted gross income exceeds:
- $400,000 for married couples
filing jointly, or
- $200,000 for all other
filers.
For comparison, the
2017 phaseout thresholds were:
- $110,000 for married couples
filing jointly, or
- $75,000 for all other filers.
The phase out
thresholds will not be indexed for inflation, so the credit will lose some
value over time.
For other qualifying dependents:
The TCJA also
includes, for tax years from 2018 through 2025, a $500 nonrefundable credit for
qualifying dependents other than qualifying children (for example, a taxpayer’s
17-year-old child or elderly parent).
