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 www.irs.gov or IRS Publication 972 (also accessible through the IRS website).