New Child Tax Credit & ODC
The new Child Tax Credit increased from $1,000 to $2,000 per qualifying child, the credit applies if
the child is younger than 17 at the end of the tax year, the taxpayer claims the child as a
dependent, and the child lives with the taxpayer for more than six months of the year.
Higher income limits mean more families are now eligible for the Child Tax Credit. The credit
begins to phase out at $200,000 of modified adjusted gross income, or $400,000 for married
couples filing jointly, which is up from the 2017 levels of $75,000 for single filers or $110,000 for
married couples filing jointly. Up to $1,400 of the credit can be refundable for each qualifying child.
This means an eligible taxpayer may get a refund even if they don’t owe any tax.
A new tax credit – Credit for Other Dependents — or ODC “Other Dependent Credit” is
available for dependents for whom taxpayers cannot claim the Child Tax Credit. These dependents
may include dependent children who are age 17 or older at the end of 2018 or parents or other
qualifying relatives supported by the taxpayer. You may remember losing the prior $1,000 tax
credit when your child turned 17 – well now we may get a $500 other dependent credit in addition
to claiming them.