If you have dependents on your tax return, you’re going to have changes in 2018. Probably the biggest change is that you no longer have dependency exemptions. In fact, personal exemptions are all completely gone for 2018. No extra exemptions if you’re older or blind. No exemptions for your children. No exemptions for your elderly family members.
In reality, other changes will cost you more, but this is one that is engrained in a lot of people’s mind. Can I claim them on my tax return? Just count how many times you hear that question in contrast to other tax questions.
The personal exemption and dependency exemption may be gone, but there is now an expanded child tax credit to partially take its place. The name is a little misleading. For a limited time, adult children who are still full-time students or disabled and elderly relatives that qualify as dependents also will give you a small child tax credit.
And at the same time, the standard deduction has increased to $12,000, $16,000 or $24,000 (single, head of household, or married & filing jointly). There are strategy possibilities there!
Make sure you mark your calendar to look for “Taxmaggedon” which will be available near the end of April 2018. Learn how to use all the 2018 tax changes to your advantage.