That's correct. Personal exemptions for dependents (and the taxpayer himself) will no longer be allowed. It will be replaced by an increase in the standard deduction . Which means dependents, other than children, are near worthless. Having a dependent might qualify you for Head of household, if you are not married
There never was an actual tax credit for dependents. The dependent exemption was a $4050 deduction from income before tax was calculated.
Nothing is final but here is the proposed changes:
Eliminated
Personal exemptions, which in 2017 reduce taxable income by $4,050 each for taxpayers, spouses and dependent children.
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But any such change does not affect 2017 tax returns (filed in 2018).
That's correct. Personal exemptions for dependents (and the taxpayer himself) will no longer be allowed. It will be replaced by an increase in the standard deduction . Which means dependents, other than children, are near worthless. Having a dependent might qualify you for Head of household, if you are not married
There never was an actual tax credit for dependents. The dependent exemption was a $4050 deduction from income before tax was calculated.
The bill would creates a temporary credit for non-child dependents: It would allow parents to take a nonrefundable $500 credit for each non-child dependent whom they're supporting, such as a child 17 or older, an ailing elderly parent or an adult child with a disability.
http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html at #6.
[Answer edited to add word nonrefundable as indicated in actual Conference bill].
Note that a tax credit (unlike a deduction) is a direct subtraction from taxes due.