Many people claim the child tax credit to help offset the cost of raising children. The provisions of the tax reform enacted last year made changes to that credit. Here are some important facts for taxpayers to know the credit changes
Amount of the credit. The new law increased the tax credit for children from $ 1,000 to $ 2,000. Eligibility for the credit has not changed. As in previous years, the credit applies if the following requirements are met:
·The child is under 17 at the end of the tax year, December 31, 2018
·The taxpayer claims the child as a dependent
·The child lived with the taxpayer for at least six months of the year
·Credit refunds. Up to $ 1,400 of the credit may be reimbursable. If a taxpayer does not owe taxes before claiming the credit, they will receive up to $ 1,400 as part of their refund.
·Earned income limit. The income limit to claim the credit was reduced to $ 2,500 per family. This means that the family must earn a minimum of $ 2,500 to claim the credit.