2018 Child Tax Credit & Earn Income Credit Changes

For the 2018 Income Tax Year, the child tax credit has changed significantly.  Below is a quick outline of some of the changes for the 2018 income tax season.

Child Tax Credit Amount – 

The Child Tax Credit Amount has increased from $1000 in 2017 to $2000 for the 2018 income tax yea.  Requirements for receiving the Child Tax Credits have not changed.

Child Tax Credit Limits- 

For 2018, the Earned Income Credit Threshold is $2500.  This means you must earn atleast $2500 in the 2018 Tax Year for claim the Earned Income Credit aka EIC.

Child Tax Credit Income Phase Out – 

The Income Phase Out for Earned Income Credit for 2018 is now $200,000 for single filers adjusted gross income (AGI), and $400,000 for married filling jointly adjusted gross income (AGI).  This has increased in 2018 from he 2017 tax year.

If you have additional questions regarding Earned Income Credit, Child Tax Credit, or any other Income Tax related questions, Contact Barnum Tax at 1-877-482-9826.

Update 05/18/2019

Here are a few updates for the 2019 Income Tax Year

For 2019 the Child Income Tax Credit will remain at $2000 per child and has not changed from 2018.

In 2019, the Additional Child Tax Credit Earnings Threshold is also still $2500.

Child Tax Credit Phase Out for 2019 also remains the same at for single filers and head of household filers with an adjusted gross income (AGI) of $200,000, and $400,000 for married filling jointly adjusted gross income (AGI).

Income Tax Extensions Due October 15th

The yearly income tax deadline for filing taxes for those who filed extensions before the April deadline is October 15.  If you did not file by October 15th, and/or have not paid some of the money for taxes due, you may face failure-to-pay penalties for the past due amount.  To avoid this, you should always consult a tax professional to estimate how much income tax is due to make the estimated payment before the April deadline, which is April 15 for most years.  You can contact Barnum Tax at 1-877-482-9826 to file your extension, taxes, or help with estimating taxes due.