What Parents Need to Know about 2019 Tax Reform

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There are two things that stick out in the 2019 Tax Reform that parents of dependent children need to know about.

 

1.     Difference In Child Tax Credit. Your kids are finally paying off! In 2017, if parents made less than $110,000 jointly and $75,000 individually, they received a $1,000 child tax credit for qualified children under the age of 17. The 2019 tax reform bill increases that credit to $2,000 per qualified child and raises the income limits for the credit to $400,000 jointly and $200,000 individually.

 

2.     529 Savings Plans Aren’t Just For College. You can now have a 529 savings plan that goes towards more than just college. For example, if you have children in private school or tutoring, you can now use money from your 529 plan tax-free!