Parents, listen up.
The new Tax Reform Law, passed in December 2018, is going to mean some changes when you file this year. Don't panic, just yet.
We are going to help you with our Exclusive free tax webinar:The Ultimate Guide to Navigating Tax Reform: Watch Our Free Webinar.
TheStreet partnered with TurboTax, the nation's premiere tax expert, for an hour long conversation. Our Tracy Byrnes was joined by TurboTax Expert Lisa Greene-Lewis.
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Among other things, they discussed what changes are in store for families. The big change centers around the child tax credits and deductions.
Tax Credit Changes:
- The credit increases from $1,000 to $2,000, if your child is 17 years old or younger
- The income levels when the credit phases out are $400,000 for joint filers
- That level is $200,000 for others
- Dependents who are not your child receive a $500 tax credit (a social security number is required to receive this credit)
According to Greene-Lewis, this new dependent credit can be applied for someone who doesn't qualify as a child. It can also be used for any relatives that you support or even a friend or a boy/girlfriend. That is, 'if' you are supporting them and it meets the dependency rules.