Child Tax Credit

In 2018, the credit for each child under the age of 17 is $2,000. For taxpayers with income above $200,000 ($400,000 married filing joint), the credit is phased out by $50 for each $1,000 of adjusted gross income above the threshold amount. For taxpayers whose tax liability is not large enough to fully utilize the allowable credit, a portion of the unused credit is refundable to the extent of 15% of the taxpayers earned income in excess of $2,500.

The Tax Cuts and Jobs Act created a new credit that starts in 2018 called the family credit. This is a $500 credit for each qualifying relative. Unlike the child tax credit, the family credit is nonrefundable.