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THURSDAY TAX TIDBITS

Tax Reform Tip
With the changes made in the tax policies late last year, there may be an impact to taxpayers with children and/or other dependents. Understanding the personal impact of this change may influence your withholding on your paychecks. This is a brief overview of how the tax law changes may affect the withholding of parents and caretakers:

Child tax credit
  • The maximum child tax credit increased from $1,000 to $2,000 per qualifying child.
  • Taxpayers whose income was too high to benefit from the Child Tax Credit in prior years may now find they qualify.
  • The credit now phases out at $400,000 for couples and $200,000 for singles, compared with 2017 amounts of $110,000 for couples and $75,000 for singles.
Additional child tax credit
  • The maximum additional child tax credit increased from $1,000 to $1,400.
  • The ACTC is a refundable credit for taxpayers who owe little or no federal income tax. 
Credit for other dependents
  • There’s a new $500 credit that can benefit taxpayers who support other dependents.
  • The taxpayer will claim the credit when filing a tax return.
  • For purposes of this new credit, other dependents include qualifying children or qualifying relatives, such as a college student or an elderly parent.
Personal exemption
  • The new law removes the personal exemption that taxpayers formerly claimed for themselves, their spouse and dependents.


Fortunately, the IRS website (IRS.gov) has a Withholding Calculator to help make a “paycheck checkup”. However, with all the other tax changes, understanding your new tax situation this year can cause some headaches. If you have any questions or concerns, do not hesitate to contact my office! We are open Monday through Friday from 9 AM to 5 PM; contact us by email or phone at: thetaxlady4u@gmail.com or 253.581.1461

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