The Tax Cuts and Jobs Act (TCJA) increased and improved the Child Tax Credit to help parents as they raise a family.
The Child Tax Credit was doubled from $1,000 to $2,000 per qualifying child, providing a financial boost to American families.
The TCJA expanded eligibility for the Child Tax Credit, allowing more families to benefit.
The refundable portion of the Child Tax Credit was increased to help middle and lower income families.
The refundable portion of the Child Tax Credit was increased from $1,000 to $1,400.
This change helps families who do not have enough income tax liability to offset the full amount of the credit
The TCJA maintained key tax benefits that help American families, including:
The Adoption Tax Credit that helps Americans who have the joy of adopting a child into their hearts and their homes.
The Child and Dependent Care Credit that helps families with the costs of child care and care for older dependents.
The Earned Income Tax Credit that helps lower-income Americans working to build a better life for themselves and their families.
Popular retirement savings options, such as 401(k)s and Individual Retirement Accounts, that help Americans save for their future.
American families benefited from an expanded medical expense deduction in tax years 2017 and 2018.
Thanks to the TCJA, families are seeing lower utility bills, in addition to lower tax bills.
At least 100 utility companies across the country have announced plans to lower rates for their customers due to the law.
Thanks to the TCJA, parents have a new way of saving for their children’s primary and secondary educations.
The TCJA expanded the types of qualified expenses for 529 Savings Accounts to allow parents to use the accounts to pay for their child’s education at primary and secondary schools.
Under the law, up to $10,000 can be used annually from a 529 Savings Account to pay for tuition.
By using these accounts, parents will be able to save to help ensure their children receive the best quality education possible.