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  • Latoya J. Jessamy

Personal exemption & Child tax credit after the reform


The new law made changes to the child tax credit and personal exemptions. Here is a quick overview of the changes to the law:

Child tax credit:

  • The maximum child tax credit increased from $1,000 to $2,000 per qualifying child.

  • Taxpayers whose income was too high to benefit from the credit in prior years may now find that they qualify.

  • The credit now phases out at $400,000 for couples and $200,000 for singles, compared with 2017 amounts of $110,000 for couples and $75,000 for singles.

  • The maximum additional child tax credit increased from $1,000 to $1,400. This is a refundable portion of the credit for taxpayers who owe little or no federal income tax.

  • There’s a new $500 credit that can benefit taxpayers who support other dependents. For purposes of this new credit, the other dependents include qualifying children or qualifying relatives, such as a college student or an elderly parent.

Personal exemption:

  • The new law removes the personal exemption that taxpayers formerly claimed for themselves, their spouses and dependents.

Its recommended that taxpayers do a 'paycheck check-up' to determine if the tax law changes could affect their tax situation when they file in 2019. The check-up can be done using the IRS withholding calculator, which can be found here: https://www.irs.gov/individuals/irs-withholding-calculator.


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