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15477: Child Tax Credit - 2018 Amounts on Tax Act Impact

1040 Individual

On the Tax Act Impact worksheet, it is showing a Child Tax Credit amount of $500, however, there are no qualifying children on this return. Why? 

The Tax Cuts and Jobs Act increased the credit amounts for qualifying children and modified the Child Tax Credit to allow for an Other Dependent Credit to be taken for certain dependents of a taxpayer that are "other than a qualifying child." Starting in 2018, the Child Tax Credit amount for qualifying children is increased to $2,000 per qualifying child (unless otherwise limited). Certain other dependents listed on the return now qualify for a $500 Other Dependent Credit.

In Drake17, the Tax Act Impact worksheet takes these changes into consideration when displaying the Child Tax Credit amounts. If there are dependents listed on the return that are over the age of 16, the $500 Other Dependent Credit will be calculated. Qualifying children will be included with the expected Child Tax Credit amount, up to $2,000. The sum of these amounts appears on the Tax Act Impact worksheet as Child Tax Credit. 

For details on what the IRS defines as a qualifying child, see Related Links below. For more information on the changes to the Child Tax Credit starting in 2018, see Section 11022 of the Tax Cuts and Jobs Act 

Related Links

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