People with young children or other dependents stand a chance to get Child Maintenance Service which reduces their federal income tax bill. In 2018 the tax bill will see a higher limit and new requirements per child according to the tax plan signed by Trump. People who had claimed the maintenance before will be required to adopt some notable changes in 2019 which aim at improving your living standards.

Child Maintenance Service helps guardians and parents of children and other dependents to increase their income. The beneficiaries receive up to $2,000 income which is designed to boost their finances, this however only apply to dependents who are below 17 years. Your level of income moreover is used to calculate the amount of child maintenance credit you will receive; you should have earned a minimum of $2,500 to qualify for credit tax. People who have earned above $200,000 for a single filler and $400,000 for joint fillers can get partial credit, but mostly above this threshold, you do not qualify for child maintenance service.

Child Maintenance Service reduces the amount you owe the IRS, for instance, if your maintenance bill is $5, 000 if you receive $2,000 as child maintenance, then your bill will be reduced to $3,000. Child maintenance is different from tax deductions which reduce the amount of income subject to taxation. Moreover, Child maintenance is refundable to a max of $1,400, if you are qualified to child maintenance credit but pay your cost liability entirely, IRS will compensate you with credit worth up to $1,400.

In the US there are some notable changes on Child Maintenance Service UK following the signing of maintenance Cuts and Job Acts by President Trump in December 2017. The credit amount per child will have increased from $1000 to $2000; children are required to have a social security number of qualifying for the service. Moreover, there is now $500 which is nonrefundable credit for each non-dependent child. These maintenance service plan furthermore combines additional child support care, making the CTC nonrefundable and increasing the limits. These changes are aimed to improve the economic standards of people who are earning a low income.

Eligibility factors to CTC include age test which requires that a child should below 17 years and should be directly related to you. The child moreover must claim you as a dependent and has not provided more than half of their support. The child should be a US citizen or a citizen alien who has lived in the US for more than half of the service and tax year. You can check for eligibility and the new changes before applying for the child maintenance service.

Eligible parents or guardians can claim their CTC by filling form 1040-line 12a which helps you determine how much child maintenance support service you qualify for. The maintenance credit office is a source of information on any issues you would like to clarify. You can contact their offices via their official site or visit your local administration offices. Feel free to contact their offices for further inquiries.