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posted Jun 4, 2019 7:08:10 PM

With the new tax bill if I claim my disabled parents I will not longer get a credit for them will I?

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Level 15
Jun 4, 2019 7:08:15 PM

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.

6 Replies
Level 15
Jun 4, 2019 7:08:12 PM

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.

<a rel="nofollow" target="_blank" href="https://www.usatoday.com/story/news/politics/2017/12/15/heres-whats-final-tax-bill-republicans-plan-send-president-trump-next-week/956580001/">https://www.usatoday.com/story/news/politics/2017/12/15/heres-whats-final-tax-bill-republicans-plan-send-president-trump-next-week/956580001/</a>

Level 15
Jun 4, 2019 7:08:13 PM

But any such change does not affect 2017 tax returns (filed in 2018).

Level 15
Jun 4, 2019 7:08:15 PM

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.

Level 15
Jun 4, 2019 7:08:18 PM

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].

Level 15
Jun 4, 2019 7:08:19 PM

Note that a tax credit (unlike a deduction) is a direct subtraction from taxes due.

Level 7
Jun 4, 2019 7:08:20 PM

Right, but also notice that personal exemptions are eliminated, so this makes up for some of that loss.