Take Advantage Of Tax Credits

This is just about the time of the year that some start looking at next year's taxes.

Here are just a few of the changes that will be seen in the upcoming tax season:

Take advantage of these credits if you are eligible:

Child Tax Credit : More families are now eligible for the Child Tax Credit. The credit begins to phase out at $200,000 of modified adjusted gross income, or $400,000 for married couples filing jointly.

Child Tax Credit increased from $1,000 to $2,000 per qualifying child, - The credit applies if: - the child is younger than 17 at the end of the tax year - the taxpayer claims the child as a dependent - the child lives with the taxpayer for more than six months of the year. - the qualifying child must also have a valid Social Security Number issued before the due date of the tax return, including extensions.

Up to $1,400 of the credit can be refundable for each qualifying child. This means an eligible taxpayer may get a refund even if they don’t owe any tax.

New Credit for Other Dependents: - available for dependents for whom taxpayers cannot claim the Child Tax Credit - these dependents may include dependent children who are age 17 or older at the end of 2018 or parents or other qualifying relatives supported by the taxpayer.

- If you qualify, a credit of up to $500 per dependent aimed at taxpayers.

Refunds: Some refunds cannot be issued before mid-February. By law, the IRS cannot issue refunds before mid-February for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit. This applies to the entire refund, even the portion not associated with these credits. While the IRS will process your return when it is received, it cannot issue EITC/ACTC related refunds before mid-February.

(Source: https://www.irs.gov/…/steps-to-take-now-to-get-a-jump-on-ne…and https://www.irs.gov/…/get-ready-for-taxes-heres-how-the-new…)