Tip of the Week: Child Tax Credit (2/22/99)

\| Home \| Site Search \| Previous Tips \|
	A New Tax Break Financial Tip of the Week by Deloitte & Touche OnLine February 22, 1999

If you have children, don't miss this tax credit.

See our archive of previous tips on your money, your taxes and your financial plan.

For 1998, a $400 tax credit is available for each dependent child (including stepchildren and eligible foster children) under the age of 17 at the end of the tax year (for 1999, the credit increases to $500 per qualifying dependent). For 1998 only, the child credit is available to the extent of a taxpayer’s regular and alternative minimum tax liabilities. Phase-out of the credit begins at modified adjusted gross income (AGI) of $110,000 for married taxpayers filing jointly, $55,000 for married taxpayers filing separately, and $75,000 for single filers. Taxpayers will lose $50 of the credit for every $1,000 (or part thereof) of AGI in excess of the threshold. The total phase-out point depends on the number of qualifying children.

For more tax tips on retirement savings, see our Tax Planning Guide.