New tax changes are in effect and the Internal Revenue Service is encouraging taxpayers to check their pay stubs to ensure the right amount is being taken out. This is especially important for …
New tax changes are in effect and the Internal Revenue Service is encouraging taxpayers to check their pay stubs to ensure the right amount is being taken out.
This is especially important for taxpayers who support dependents that can't be claimed for the Child Tax Credit. The IRS Withholding Calculator can help these taxpayers make sure they have the right amount of tax withheld from their pay.
The Tax Cuts and Jobs Act, enacted in December 2017, added a new Credit for Other Dependents. It is a nonrefundable credit of up to $500 per qualifying person. Taxpayers may be able to claim the new credit for dependents.
This change, along with others, can affect a family's tax situation in 2018. Checking and adjusting withholding now can prevent an unexpected tax bill and even penalties next year at tax time.
The Credit for Other Dependents is available for dependents, such as children who are age 17 or older at the end of 2018, or parents or other qualifying relatives supported by the taxpayer. Families with qualifying children under the age of 17 should first review their eligibility for the expanded Child Tax Credit, which is larger.
For more information about these credits, visit Steps to Take Now to Get a Jump on Next Year's Taxes on IRS.gov.
-- Submitted report