The entire tax code was reformed under President Trump’s Tax Cuts and Jobs Act (TCJA). The TCJA has changed many things about the Child Tax Credit. These new rules apply to the new tax season.
How Much do I Get Back for a Child?
Under the TCJA, the Child Tax Credit saw a substantial increase to $2,000 per qualifying child. Up to $1,400 of this amount is refundable, depending on your income. This has doubled the previous amount, and the Child Tax Credit was previously only refundable if you were also claiming the Additional Child Tax Credit.… Read the rest
One of the most difficult financial burdens when you have young children, is paying for dependent care, but some good news is that there are some relief options when it comes time to file your taxes.
What is the Child and Dependent Care Tax Credit?
The child and dependent care tax credit is available for almost anyone who has a dependent and is working.
The dependent care tax credit is different than the child tax credit, and this article is intended to help you understand how to claim the childcare tax credit.… Read the rest
The original child tax credit, known as the CTC, was first introduced back in 1997, before becoming available to claim in 1998. In the beginning, this was a simple nonrefundable credit for $400, which applied to each qualifying child if they were under the age of 17.
There have been many changes over the last 20 years, with qualifying children being worth a tax credit of $2000 per child. This was refundable for taxpayers who had at least $3,000 of earned income.… Read the rest
One of the most valuable tax credits available to homes and businesses is the solar energy tax credit. It’s a tax credit that applies to solar-powered hot water and panel systems. It’s worth up to 30% of the total cost of purchase and installation.
At the end of the year 2015, Congress extended this credit for four years. That means it’s currently possible for you to claim the solar tax credit until the end of 2019 in its current form. It will gradually phase out until 2022 when homeowners can no longer claim it, and it’s only worth 10% to businesses.… Read the rest
The EIC/EITC is known as the Earned Income Tax Credit. This tax credit is available for those who have a low or moderate-income.
The amount that you receive for this credit is determined based on the filing status you use and your salary for the year.
Those who qualify pay less in federal taxes and can claim the earned income credit when they file their tax returns.
Basic Requirements to Be Eligible
- You have to have a qualifying child, and they must have a social security number
- You cannot file married or file separately
- Your investment income should be no higher than $3,600
- You have to be a U.S.
… Read the rest