Countdown to Tax Day #3: More Family Friendly
Editor's Note: The Joint Economic Committee is counting down the days until Tax Day (April 17th) by showing how the Tax Cuts and Jobs Act will make life easier next year. Check out the Tuesday and Wednesday editions.
April 12, 2018
Countdown to Tax Day
Five Ways the TAX CUTS AND JOBS ACT (TCJA) Will Make Tax Day Less Taxing Next Year
#3: More Family Friendly
When taxpayers file taxes next year, they will see a child tax credit that has doubled from $1,000 to $2,000 per child. Up to $1,400 of each credit will be refundable, allowing those without tax liability to still claim the credit. The refundable portion will grow with inflation each year up to the full $2,000 value.
TCJA also includes a nonrefundable $500 tax credit for taxpayers with other dependents. Additionally, TCJA maintained the adoption tax credit and the credit for child and dependent care expenses. The combination of lower tax rates, a larger standard deduction, and expanded tax credits for children produces substantial tax relief for a family of four, illustrated in the chart above.