Tax News
The Tax Center prides itself on staying current with tax law changes. Following are some of the areas that commonly affect taxpayers.
Child Tax Credit
You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States.
To be a qualifying child your dependent generally must:
- Be under age 17 at the end of the year
- Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
- Provide no more than half of their own financial support during the year
- Have lived with you for more than half the year
- Be properly claimed as your dependent on your tax return
- Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
- Have been a U.S. citizen, U.S. national or U.S. resident alien
Parents and guardians with higher incomes may be eligible to claim a partial credit.
Capital Gain Tax Rates
The tax on long-term capital gains (assets owned for more than one year) is calculated at a reduced tax rate of 0% to 20% depending on your filing status and income.
Retirement P lans
The beginning age for Required Minimum Distributions (RMDS) from your retirement plans has been raised from 70 1/2 to age 73.
Bonus Depreciation and Section 179
Qualifying business assets purchased can be deducted by taking advantage of the bonus depreciation allowance enacted by the TCJA. This allows a deduction for the full cost of the asset.
Ask your preparer for more information.
