2018 Enhanced Child Tax Credit & New Family Credit


The tax law that was passed by Congress and signed into law by President Trump on December 22, 2017 called the Tax Cuts and Jobs Act (H.R. 1) made several changes to the child tax credit. Below is the UPDATED information.

The child tax credit is increased from a maximum of $1,000 to a maximum of $2,000 per qualifying child under age 17 on the last day of the tax year. The adjusted gross income (AGI) amount where the credit will begin to phase out is $400,000 if married filing jointly ($200,000 for all other filers).

For tax filers who do not use up all of the regular child tax credit the "additional tax credit" which is refundable is increased from a maximum of $1,000 to a maximum of $1,400. The "earned income" threshold to qualify for the additional tax credit is reduced from $3,000 to $2,500.

In order to claim the child tax credit, the child MUST have a valid Social Security number. You CANNOT claim the child tax credit for children without a number or with an Individual Taxpayer Identification Number (ITIN) or with an Adoption Taxpayer Identification Number (ATIN).

The new law also creates a temporary nonrefundable family tax credit up to $500 for dependents who are NOT qualifying children.

These changes are effective for tax years 2018 through 2025.