Does the new tax code affect my withholding because I have dependents?
- October 16, 2018
- David Greene
- Comments Off on Does the new tax code affect my withholding because I have dependents?
Because the law expanded and made significant changes to the Child Tax Credit, it also suspended the deduction for personal exemptions. The IRS has recommended that parents and caregivers should do a “paycheck checkup” to determine how these changes could affect their 2018 tax situation. Here are some of the changes by The Tax Cuts and Jobs Act: (1) raises the Child Tax Credit from $1,000 to $2,000; (2) changes phase-outs for the Child Tax Credit and the Additional Child Tax Credit; (3) adds a new credit. Dependents who can’t be claimed for the Child Tax Credit may still qualify taxpayers for the Credit for Other Dependents. This is a credit of up to $500 per qualifying person; (4) Offers the Additional Child Tax Credit.