Child Tax Credit | Southern Minnesota

Q:  How come when I filed my taxes this year, I only got a $3,000 child tax credit–when I have 3 kids?  They are 14, 17 and 18?  They radio told me I get $2,000 per child!  What did I do wrong?

A:  First of all, you didn’t do anything wrong.  The $2,000 child tax credit is only for your children under the age of 17.  So, for you 14 year old, you received $2,000 and for your kids that are 17 and 18, you get a $500 dependent tax credit thereby totaling the $3,000 that you received.  The new $500 credit is for each qualifying relative that you can claim on your tax return.  However, this tax credit phases out at $400,000 for married couples filing a joint return, and $200,000 for all other tax payers.  The phase-out means that the tax credit is reduced as your income increases.  For more information on the new tax law changes, please feel free to contact our office.

Taxes, Investments, Business and maybe a little more.  Sandy Flom, Faribault CPA.