What Is The Maximum Child Tax Credit For 2019 | Changes & Claiming

I am sure you are like me who does not want to pay more tax. Well everyone wants to get the tax credit because it lowers your liabilities from a dollar to dollar. So if you have kids or other dependent members, then you are more likely to qualify for the child tax credit. 

This credit gives benefits to parents to raise their kids who have low income. According to the tax reform 2018-2019, you can get a child tax credit worth $2000 per qualifying child.

How much is the Child Tax Credit for 2019?

The Child Tax Credit is the benefits given to the parents for their child who is under 17 years old. The maximum amount of child tax credit that you can claim for the tax year 2019 is $2000 for each qualifying child. 

The taxes legislation which was passed in December 2017 has introduced major changes in the tax credit amounts. From 1st January 2018 till 2025, the child tax credit has been doubled from $1000 to $2000 per child. But apart from that, your income level determines how much tax credit you will get. In order to qualify for CTC, you should have earned $2500.

Not all the tax credits are refundable but this is partially refundable. It is refundable when you qualify for the additional child tax credit. The credit may reduce your tax liabilities to zero and you can get about $1400 refund on the child tax credit. Now if your child is over 17 years old, then you can be qualified for other dependent credits or the family credit which is $500. And this is not refundable, the only child tax credit is refundable.

Child Tax Credit changes for 2019

When President Trump signed the Tax Cuts and Jobs Act in December 2017, a notable change was seen in the CTC. They are as follows:

Parameters	Tax Year 2017	Tax year 2018-2019
Child tax credit amount per child	worth $1000	worth $2000
Earned income limit	worth $3000	worth $2500
Refundable status	Not refundable	Refundable upto $1,400
Modified adjusted gross income	For single filers - $75,000 For joint filers - $110,000	For single filers - $200,000 For joint filers - $400,000
Social security number	Not required	Required
Other dependent credits	Not applicable	worth $500 (non-refundable)

Pros and Cons of the Changes

For many of us, the changes that are made in CTC are profitable. Reasons for benefits are the decrease in earned income threshold, an increase in income limit phase-out, CTC is refundable and etc.

But it has even introduced some of the limitations. The new law actually has eliminated the concept of the personal exemption. You won't get the deduction for your dependence (previously you used to get). So, if you are in the middle tax bracket, it might be difficult to get the CTC.

Let's assume, you have a qualifying child for the CTC. The Personal Exemption you were able to get in 2017 was around $4,050. So, you will fall under the 25% tax bracket. The tax you were getting on your personal exemption was around $1000. But now it is gone since your CTC is double instead. According to this, it doesn't make huge benefits for one who is under a high tax bracket.  

Who is Qualify for Child Tax Credit 2019

In order to qualify for the CTC in 2019, your child must satisfy given requirements:

• Your child must be under 17 years old by the end of the tax year (likely to say should be an age of 16 years old).

• Your child should be the U.S citizen to qualify for the child tax credit. And in addition to this, your child must have a social security number to be qualified for this.

• You need to claim your child as dependent on your federal tax return.

• The child can be your own bloodlines, like your son, daughter, or even the foster child, stepchild, stepbrother, stepsister, grandchild and other descendants in order to qualify for CTC.

• The child should not have provided over half of his/her own support for 2019.

• Your child must have lived with you. He/she must have lived for more than half of 2019 with you in order to qualify.

What are the other dependent credits?

Now if your child is over the age of 17 years in the tax year then you are not qualified for child tax credit 2019. But you might able to qualify for family credit or other dependent credit of the total amount is $500. And this is non-refundable credit.

Is it Refundable or not?

We all love tax credits because of the fact that it lowers our liabilities from a dollar to dollar. The child tax credit 2019 is refundable credit now. Well in past it was non-refundable till 2017 tax year. The refundable amount is $1400 per child. So what it means is even if you have tax liabilities of $0 and if you are qualified, you can get refunded. So if you have two qualifying children, then you will get $2800. But you can only get these benefits if you qualify for Additional Child Tax Credit (ACTC).

How to claim the Child Tax Credit 2019?

Once when you have all conditions satisfied for CTC, the very next step is to claim it. You can claim the Child Tax Credit on filling the Form 1040 (Form 1040A or Form 1040NR). 

If you qualify for ACTC, you need to attach one extra 8812 form. You need to be careful while filling the form, read all the instructions carefully.

How much is the Income Limits for Child Tax Credit 2019

As mentioned before, first your earned income must be $2500 in order to claim for CTC.

Based on the modified adjusted gross income, the CTC phases out for single filer begins at $200,000 and that for the married/joint filer begins at $400,000.

There is also a limitation while claiming CTC. If you are a single filer, and your income is more than $240,00, then your phase-out threshold limit is over, and you can't claim. Similarly, if you are a joint filer, you can claim when your limit crosses $440,000.

Top Tax Service Softwares

There are hundreds of various tax services software are available. Here are the 5 top tax software where you can claim for the child tax credit 2019. 

1. TurboTax: You can just go on answering some of the simple questions and you can easily claim for the CTC. This app is user-friendly and also stands best among the other tax software.

2. H&R Block: When it comes to the simple and easy to use, H&R blocks stand at the first place. It has got several automatic tools W2 photo import. The software is very handy to use.

 3. TaxAct: This is mostly known for providing its product at a cheaper rate than compared to TurboTax and H&R Blocks. It has got all basic feature and is straight forward to use.

4. Credit Karma: It is one of the best value tax software that allows you to file for free even in the complex return. If you care about the price, this is best for you. 

5. E-file: It provides free federal filing. E-file is new online tax software. Although it cannot be compared with the giants like TurboTax and H&R Blocks, it is helpful for new filer users. 

What is the Child and Dependent Care Tax Credit (CDCTC)?

You should note that Child and Dependent care tax credit is different than just child tax credit. If you have a dependent child and you are paying someone else to take care of your child so that you can do your job, then you might qualify for
CDCTC. 

In order to claim this credit, you must be the parent or guardian of the qualified child. You can even claim for the disabled members who are incapable to take care of themselves. Read more about CDCTC

Frequently asked question

My daughter turned 17 on December 31st, 2018. Can I claim credit for her?

No, you can't claim. One should be under the age of 17 (exactly 16 years old) in order to qualify for the child tax credit. But you can get other dependent credits i.e worth $500 if you qualify for an additional child tax credit.

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