TCJA Follows PATH In Matter of Additional Child Tax Credit, Likely

[mascale]

The Government shut-down could be said to have masked confusion over just what the Republican Party thinks it may have done in the Tax Cut and Jobs Act. The confusion comes about from the Additional Per Child Tax credit. In the link below, there is still no official answer. The person asks if the refundable portion acts like for tax year 2017. That would limit the total credit to the refundable $1400 per child,, subject to the various limitation.

It is also shown that the act goes to attorneys, who send it to IRS: Which then publishes rules. It is widely conceded that TCJA, however, follows Protect Americans from Tax Hikes rules, starting in 2015. So Taxpayer for 2018 has two credits at $1400 per, in the link. The refund in the one example--from a $2500 tax, is $300, the current PATH kind of understanding.

How has the Child Tax Credit changed for 2018 with the passage o... - TurboTax Support

One party rule is this fascinating(?)! Many commentators do thing that the application of the child tax credit allows both the non-refundable and the refundable parts to sum to the total allowed. That has not been the case to date, in the link.

"Crow, James Crow: Shaken, Not Stirred!"
(White Eyes created IVY League schools to make Deuteronomy 23:19-20, US Federal FRB policy: Following some lunatic Gay from the "Across-The-Pond," unaware of Matt 25:14-30!)

 

[TemplarKormac]

Um... what?

 

[mascale]

The actual effect of the Republican Tax Cuts doesn't even keep pace with inflation for 2017, or the rate expected for 2018. Specifically, married filing jointly with two eligible children , for tax credit computing, would only get about 1.5% cut for this year, and none for last year. The regular CPI inflation is about 2.2% for both tax years. The median household, and taking an IRA deduction, doesn't do very well at all. That would be a $60,000 earned income household.

Pundits claim that the new $2,000 per child credit includes both the refundable and the non-refundable parts for the total of $2000 per child, instead of the $1400 refundable part only per child, like in the tax years preceding. PATH had established the rule in 2015, and it hasn't changed.
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Now, if gross tax liability (AGI minus standard deduction) is, say, $2,500, and you have two kids (credit of $4,000 @ $2,000 each, $2,800 of which is refundable @ $1,400/child):

• Do you only get to use $2,500 of the $4,000 to reduce tax liability to $0, and there is no refundable portion? (do you only get the $1,400/child refund if your gross liability is $0, e.g. for MFJ your AGI is $24,000 or less?)
• If the refundable portion is $2,800 ($1,400 x 2), is the "non-refundable" part used earlier to reduce tax liability to zero, subtracted from the refundable limit ($2,800), resulting in a non-refundable credit of $2,500 and a refundable credit of $300? (similar to how it has worked through 2017?)
• Or do you get $2,500 of the $4,000 to stand against gross tax liability, and *then* another $2,800 refundable portion?

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The bold typed illustration is apparently what applies.

So the Republicans can be said to be lying, even about their own TCJA!

It is a Trump political party!

"Crow, James Crow: Shaken, Not Stirred!
(Many are called. . . and usually not something flattering!)