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  • Latoya J. Jessamy

The child tax credit after the tax reform


The tax reform enacted December, 2017 made some important changes to the child tax credit. Below is a highlight of some of the changes:

  • The credit increased. The new law increases the child tax credit from $1,000 to $2,000. However, the eligibility requirements have not changed:

  • the child still has to be younger than 17 at the end of the tax year

  • the taxpayer has to claim the child as a dependent

  • the child has to live with the taxpayer for at least six months of the year

  • The additional child tax credit increased. The refundable portion of the credit is now up to $1,400. That is if a taxpayer doesn’t owe any tax before claiming the credit, they will receive up to $1,400 as part of their refund.

  • The earned income threshold lowered. The income threshold to claim the credit has been lowered to $2,500 per family. This means a family must earn a minimum of $2,500 to claim the credit.

  • The income threshold increased. The income threshold at which the child tax credit begins to phase out is increased to $200,000, or $400,000 if married filing jointly. This means that more families with children younger than 17 qualify for the larger credit.

  • There is a credit for other dependents. Dependents who can’t be claimed for the child tax credit may still qualify the taxpayer for the credit for other dependents. This is a non-refundable credit of up to $500 per qualifying person. These dependents may also be dependent children who are age 17 or older at the end of 2018. It also includes parents or other qualifying relatives supported by the taxpayer.


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