{"id":2090,"date":"2019-03-17T12:52:34","date_gmt":"2019-03-17T12:52:34","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=2090"},"modified":"2019-03-17T14:20:13","modified_gmt":"2019-03-17T14:20:13","slug":"child-tax-credit-2018-2019-simplified","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/","title":{"rendered":"Child Tax Credit 2018 &#038; 2019 Simplified !"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-&amp;-2019-simplified-!\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019-600x333.webp 600w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019-300x167.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019.webp 810w\" sizes=\"(max-width: 810px) 100vw, 810px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019.jpg\" height=\"450\" width=\"810\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019-600x333.jpg 600w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019-300x167.jpg 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2019\/03\/child-tax-credit-2018-2019.jpg 810w\" sizes=\"(max-width: 810px) 100vw, 810px\" class=\"wp-image-2093 sp-no-webp\" alt=\"Child Tax Credit 2018 & 2019\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/a><\/figure>\n\n\n\n<p>The Child Tax Credit law under section 24 of the 26US Code has changed a lot from the tax year 2018 with the passage of the Tax Cuts &amp; Jobs Act. Earlier i.e before TCJA, a taxpayer could claim a tax credit worth up to $1,000 per qualifying child. but from the tax year 2018 onwards, you can claim tax credit <g class=\"gr_ gr_64 gr-alert gr_spell gr_inline_cards gr_disable_anim_appear ContextualSpelling ins-del multiReplace\" id=\"64\" data-gr-id=\"64\">upto<\/g> $2000 per qualifying child. So, what child tax credit IRS allows in 2018 or 2019?<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662d96e808a36\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d96e808a36\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/#New_Child_Tax_Credit_Rules_from_2018\" title=\"New Child Tax Credit Rules from 2018\">New Child Tax Credit Rules from 2018<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/#Who_is_a_%E2%80%9CQualified_Child%E2%80%9D_for_the_Child_Tax_Credit\" title=\"Who is a \u201cQualified Child\u201d for the Child Tax Credit?\">Who is a \u201cQualified Child\u201d for the Child Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/#What_is_Child_Tax_Credit_Income_Levels_Phaseout\" title=\"What is Child Tax Credit Income Levels &amp; Phaseout ?\">What is Child Tax Credit Income Levels &amp; Phaseout ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/#Can_You_Claim_Refund_of_the_Child_Tax_Credit\" title=\"Can You Claim Refund of the Child Tax Credit?\">Can You Claim Refund of the Child Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-2018-2019-simplified\/#500_Additional_Dependent_Credit\" title=\"$500 Additional Dependent Credit\">$500 Additional Dependent Credit<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_Child_Tax_Credit_Rules_from_2018\"><\/span>New Child Tax Credit Rules from 2018<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Major child tax credit changes are as under :<\/p>\n\n\n\n<ul><li>The Child Tax Credit is now worth up to <strong>$2,000 per qualifying child.<\/strong><\/li><li>The refundable portion of the child tax credit is limited to $1,400 ( 15% of earned income ) for the tax year 2018 subject to income phaseout.<\/li><li>The age cut-off remains at 17 at the end of the year. Further, a valid SSN to the child is a must to qualify for Child Tax Credit. <\/li><li>The minimum income that you must earn for claiming child tax <g class=\"gr_ gr_691 gr-alert gr_gramm gr_inline_cards gr_run_anim Style multiReplace\" id=\"691\" data-gr-id=\"691\">credit  is<\/g> now to $ 2,500.Earned income can be from wages, salary, tips, employer-based disability, self-employment income, military pay, etc<\/li><li>The beginning credit phaseout for the child tax credit starts at $200,000 ($400,000 for joint filers). <\/li><li>From the year 2018, you can claim an additional non-refundable tax credit of  $500 for qualifying relatives <em><strong>who may not necessarily have to be children below 17 <g class=\"gr_ gr_493 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Style multiReplace\" id=\"493\" data-gr-id=\"493\">years <\/g><\/strong><\/em><g class=\"gr_ gr_493 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Style multiReplace\" id=\"493\" data-gr-id=\"493\">.<\/g> This is explained later in this article.<\/li><\/ul>\n\n\n\n<p>Since this credit is non-refundable, it can only help reduce taxes owed. If you can claim both this credit and the CTC, this will be applied first to lower your taxable income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_a_%E2%80%9CQualified_Child%E2%80%9D_for_the_Child_Tax_Credit\"><\/span>Who is a \u201cQualified Child\u201d for the Child Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The newly amended law for a claim of the child tax credit as altered the eligibility conditions states that the child must be a qualified child. So we need to understand &#8220;<em>Who is a qualified child<\/em> ?&#8221; for the purpose of the claim of the child tax credit.  A qualifying child is one :<\/p>\n\n\n\n<ol><li>Who is of<span style=\"background-color: rgb(232, 234, 235);\"><b> <\/b><\/span>age 16 or younger \u2013 at the end of the year.<\/li><li>Who is related to the claimant of the child tax credit as a &#8211; son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals (includes your grandchild, niece, or nephew) or is a legally adopted child <\/li><li>The child must not have provided more than half of their own support for the year.<\/li><li>You must claim the child as a dependent and that you provided at least half <g class=\"gr_ gr_18 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Grammar only-ins replaceWithoutSep\" id=\"18\" data-gr-id=\"18\">the<\/g> child\u2019s support during the tax year.<\/li><li> The child must be a U.S. citizen, U.S. national, or U.S. resident alien. <\/li><li>The child must be resident of <g class=\"gr_ gr_19 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Grammar only-ins replaceWithoutSep\" id=\"19\" data-gr-id=\"19\">USA<\/g> ( means lived with you for more than half of the tax year.<g class=\"gr_ gr_20 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Style multiReplace\" id=\"20\" data-gr-id=\"20\">) ,<\/g> although there is some exception. Refer to <a rel=\"noreferrer noopener\" href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p972.pdf\" target=\"_blank\">IRS Publication 972, Child Tax Credit<\/a>.<\/li><li>The child must have a Social Security Number before due date of filing tax return.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Child_Tax_Credit_Income_Levels_Phaseout\"><\/span>What is Child Tax Credit Income Levels &amp; Phaseout ?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Child tax credit phaseouts <g class=\"gr_ gr_22 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"22\" data-gr-id=\"22\">begins<\/g> with a modified adjusted gross income (<strong>MAGI<\/strong>) of more than  $200,000 for all taxpayers except married filing jointly in whose case phaseout begins at $ 400,000. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How phaseouts work ?<\/h3>\n\n\n\n<p>Under new rule of phaseout computation, there is <g class=\"gr_ gr_210 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Grammar only-ins replaceWithoutSep\" id=\"210\" data-gr-id=\"210\">reduction<\/g> child tax <g class=\"gr_ gr_104 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace\" id=\"104\" data-gr-id=\"104\">credt<\/g> by of $50 for each increase of $1,000  of Modified Adjusted Gross Income. It is clear that the new child credit rule helps you more if you have <g class=\"gr_ gr_667 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"667\" data-gr-id=\"667\">higher<\/g> income because the phaseout begins at $ 200,000 ($400000 <g class=\"gr_ gr_669 gr-alert gr_gramm gr_inline_cards gr_run_anim Style multiReplace\" id=\"669\" data-gr-id=\"669\">for  joint<\/g> filers). On the <g class=\"gr_ gr_688 gr-alert gr_gramm gr_inline_cards gr_run_anim Style multiReplace\" id=\"688\" data-gr-id=\"688\">contrary <\/g><g class=\"gr_ gr_688 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Style multiReplace\" id=\"688\" data-gr-id=\"688\"><g class=\"gr_ gr_693 gr-alert gr_gramm gr_inline_cards gr_run_anim Style replaceWithoutSep\" id=\"693\" data-gr-id=\"693\">,<\/g><\/g><g class=\"gr_ gr_693 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Style replaceWithoutSep\" id=\"693\" data-gr-id=\"693\">if<\/g> you earn less or have no earned income at all, the Child Tax Credit is either very less or of no help at all !.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_You_Claim_Refund_of_the_Child_Tax_Credit\"><\/span>Can You Claim Refund of the Child Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p style=\"background-color:#fdebb9\" class=\"has-text-color has-background has-very-dark-gray-color\">The answer is a definite yes provided there is a balance of child tax credit eliminating any taxes you owe. If that be the case , you can claim a refund by submitting <strong>child tax credit form<\/strong> <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f1040s8.pdf\" target=\"_blank\" rel=\"noopener\"><strong><em>Schedule 8812<\/em><\/strong><\/a>, the \u201cAdditional Child Tax Credit\u201d with your tax return. <\/p>\n\n\n\n<p style=\"background-color:#f8e9bf\" class=\"has-background\">The refundable portion is <strong>equal to 15%<\/strong> of your earned income over $2,500, <strong>up to $1,400<\/strong>. To estimate how much of the refund you would receive, you can use the <strong>following equation:<\/strong><\/p>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>(Your salary &#8211; $2,500) x .15<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"500_Additional_Dependent_Credit\"><\/span>$500 Additional Dependent Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is from the tax year 2018 onwards, courtsey TCJA. The additional $500 non-refundable tax credit is available to anyone who satisfies following three conditions<\/p>\n\n\n\n<p class=\"has-background has-pale-cyan-blue-background-color\">(i) <em>provides half the financial support to a parent or grandparent, stepparent, aunt or uncle, niece or nephew, in-laws, or someone who lives in your home all year long<\/em>, <strong>and<\/strong><\/p>\n\n\n\n<p class=\"has-background has-pale-cyan-blue-background-color\"><strong>(ii)<\/strong> the dependent doesn\u2019t earn more than $4,150 (for <g class=\"gr_ gr_106 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"106\" data-gr-id=\"106\">tax<\/g> year 2018). <\/p>\n\n\n\n<p class=\"has-background has-pale-cyan-blue-background-color\">The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien. <\/p>\n\n\n\n<p>The additional tax credit of $ 500 is counted along with main child tax credit for a single phase out when adjusted gross income exceeds $200,000, or $400,000 if married filing jointly. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Child Tax Credit law under section 24 of the 26US Code has changed a lot from the tax year 2018 with the passage of the Tax Cuts &amp; Jobs Act. Earlier i.e before TCJA, a taxpayer could claim a tax credit worth up to $1,000 per qualifying child. but from the tax year 2018 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[995,994,996],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2090"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=2090"}],"version-history":[{"count":0,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/2090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/2093"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=2090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=2090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=2090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}