Changes to the Child Tax Credit

Changes to the Child Tax Credit

According to the IRS, taxpayers should be aware of the following changes that were made to the Child Tax Credit after tax reform legislation was enacted last year:

  • Credit increased to $2,000 (eligibility requirements were not changed)
  • Credit is refundable up to $1,400
  • Earned income threshold has been lowered to $2,500 per family
  • Child Tax Credit begins to phase out when income reaches $200,000 (individual) or $400,000 (married filing jointly)

Additional information about the Child Tax Credit can be found on the IRS website at or IRS Publication 972 (also accessible through the IRS website).



More Updates


The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

Read More »

Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

Read More »

Tapping Into Retirement Accounts If Not Directly Impacted By COVID-19

The recently-­‐enacted Coronavirus Aid, Relief, and  Economic Security Act (CARES  Act) signed by President Trump  on  March  27, 2020, allows  “qualified individuals” to take up  to  $100,000 of  penalty-­‐free IRA and company plan withdrawals during 2020. “Qualified individuals” include those who are (or whose family members are) sickened by the virus or who have virus-­‐related

Read More »
Scroll to Top