August 13, 2018
The new tax law includes a Credit for Other Dependents - those who can’t be claimed for the Child Tax Credit. This new credit offers up to $500 per eligible dependent and begins phasing out at $400,000 for joint filers and $200,000 for other taxpayers.
This change can affect your tax situation. Doing a paycheck checkup now, using the IRS Withholding Estimator, can save you from an unexpected tax bill or penalties next year.
“Other dependents” are qualifying children and relatives that you claim on your tax return, including:
- Dependent children who are age 17 or older at the end of 2018.
- A parent you support.
Don’t forget to check your state withholding too.