Child tax credit (CTC)

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happysteward
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Child tax credit (CTC)

Post by happysteward » Sun Sep 01, 2019 8:20 am

Hi friends,

Just had my first grandchild and was wondering about the new tax laws, I remember back when that if your child was born before midnight on December 31 you got an exemption for the year...but now those personal exemptions are gone, however...seems like there is now a credit (CTC) available for MFJ income of < $400,000 (threshold used to be much lower)...

This CTC is for a qualifying child...seems like one of the qualifications is that the child must have lived with you for >6 months...my grandchild was just born (August 27) so seems like she will not qualify for this nice credit ($2,000) this year.

Am I correct in my reading of the law?

(I know this is not applicable for me as the grandpa, I am asking for my daughter)
"How much money is enough?", John Rockefeller responded, "...just a little bit more."

Penguin
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Re: Child tax credit (CTC)

Post by Penguin » Sun Sep 01, 2019 9:15 am

https://www.irs.gov/faqs/earned-income- ... ld-rules-1
This CTC is for a qualifying child...seems like one of the qualifications is that the child must have lived with you for >6 months...my grandchild was just born (August 27) so seems like she will not qualify for this nice credit ($2,000) this year.
The child will qualify for the CTC.
The child must be born on December 31 or before. See the reference above.
Jon

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happysteward
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Re: Child tax credit (CTC)

Post by happysteward » Sun Sep 01, 2019 12:13 pm

This link says...”Generally, a child must live with you in the United States for more than half of the tax year to be a qualifying child.”...which suggests to me that my grandchild will not qualify...am I missing something on the link?
"How much money is enough?", John Rockefeller responded, "...just a little bit more."

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happysteward
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Re: Child tax credit (CTC)

Post by happysteward » Sun Sep 01, 2019 12:19 pm

Oh maybe I see....looked at the link again...

“You may treat a child who was born ... as having lived with you for more than half of 2018 if your main home was the child’s main home ... for more than half of the time ...in 2018.”
"How much money is enough?", John Rockefeller responded, "...just a little bit more."

fujiters
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Re: Child tax credit (CTC)

Post by fujiters » Sun Sep 01, 2019 12:23 pm

https://www.irs.gov/publications/p972#e ... k100012083

"Exceptions to time lived with you. A child is considered to have lived with you for more than half of 2018 if the child was born or died in 2018 and your home was this child's home for more than half the time he or she was alive. "

Assuming same rules apply for tax year 2019, your daughter will be able to claim.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

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