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Your New Baby

Other Tax Credits

Child Tax Credit

Parents may claim a $2,000 credit against federal income tax for each child under age 17. The credit is phased out starting from $400,000 of adjusted gross income for married joint filers and ($200,000 for single filers).

The child credit is partly refundable; the refundable portion is referred to as the "additional child tax credit." You receive a refundable credit if your Child Tax Credit is greater than the total amount of income taxes you owe, as long as you had an earned income of at least $2,500.

Earned Income Tax Credit

A credit is available to certain low-income taxpayers who have earned income. The maximum credit in 2019 is up to $529 ($519 in 2018) for a taxpayer with no children and who has earned income less than $15,570 ($15,270 in 2018), and $3,526 ($3,461 in 2018) for a taxpayer with one child and earned income less than $41,094 ($40,320 in 2018). For a taxpayer with two children and earned income less than $46,703 ($45,802 in 2018), the maximum 2019 credit is $5,828 ($5,716 in 2018). For 3 or more children, higher limits apply.

Child and Dependent Care Tax Credit

A credit is allowed for a portion of qualified child or dependent care expenses that are paid in order for the taxpayer to work. The maximum amount of child care expenses that can be considered is $3,000 for one child or dependent, or $6,000 for two or more. The credit is 35% of eligible child care expenses with income of less than $15,000, gradually reduced to 20% of qualifying expenses for income exceeding $43,000.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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