FAMILY TAX CREDIT
HIDDEN CREDIT!
| Almost forgotten in the new tax law is an expansion of the Child Tax Credit beyond age 17. Now,you may be eligible for a (nonrefundable) $500 credit for certain dependents who you claim on your tax return. Specifically, any child who meets the dependency tests is eligible if under age 19 or if under age 24 and a full-time student. A disabled child of any age qualifies as do “qualifying relatives” — a very specific term, which includes — of course — unrelated individuals! HOWEVER, only very specific AND related individuals can be claimed as dependents (and thus be eligible for the new credit WITHOUT living with you the entire year. Others — such as nephews, nieces, friends and strangers who you happen to feed for a year MUST live with you. If you have not yet abandoned me, you can use the IRS’s “interactive tool” (no you cannot talk to it like Siri.) |
| This credit (credits are dollar for dollar reductions in your tax liability, thus better than deductions, which merely reduce your “taxable income”.) is non-refundable, which means once your tax liability hits zero (if it does!) you are ineligible for the credit. The original Child Tax Credit is partially refundable. HOWEVER, only very specific AND related individuals can be claimed as dependents (and thus be eligible for the new credit WITHOUT living with you the entire year. Others — such as nephews, nieces, friends and strangers who you happen to feed for a year MUST live with you. If you have not yet abandoned me, you can use the IRS’s “interactive tool” (no you cannot talk to it like Siri.) This credit (credits are dollar for dollar reductions in your tax liability, thus better than deductions, which merely reduce your “taxable income”.) is non-refundable, which means once your tax liability hits zero (if it does!) you are ineligible for the credit. The original Child Tax Credit is partially refundable. |
