More good news due to increased income limits in the new tax laws. If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might now be eligible to claim both the Child Tax Credit and the Child and Dependent Care Credit.
To qualify for the Child Tax Credit (also known as the “per-child credit”), you must have a child who was less than 17 years old throughout 2018, can be claimed as a dependent on your tax forms, and lived with you for at least six months of the year. The income limit at which a phase out of the credit begins was nearly quadrupled under the Tax Cuts and Jobs Act of 2017, to $200,000 ($400,000 for married filing jointly). The credit itself doubled from $1,000 to $2,000 per child.
The Dependent Care Tax Credit is a dollar-for-dollar tax credit for expenses such as day care or home assistance needed for a dependent child under age 13 or incapable of self-care, with a maximum credit of $3,000 for one child.
My practice is in Severn, MD.
I specialize in the following services for both businesses and individuals:
Tax Planning &Tax Preparation for business owners and individuals.
IRS Representation & Tax Resolution for business owners & individuals who have tax debt.
Real Estate Investor Accounting: For years I have specialized in helping real estate investors improve their bottom line.
Contact me to learn whether you can claim the Child Tax Care credit or Dependent Care Tax Credit or for any other needs at:
Lisa D Church, CPA, EA, NTPI Fellow, MBA
7865 Clark Station Rd
Severn, MD 21144