How Old Are Your Kids? The Answer Could Determine Your Tax Bill
- Families that itemize, have non-child dependents on the hook
- Millions of Americans could owe more than is withheld in 2018
Photographer: David Paul Morris/Bloomberg
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Earlier this year Jay Charles’s twice-a-month paycheck jumped by $65, a result of the new U.S. law that cuts taxes almost $1.5 trillion over the next decade. Then he did the math.
It turns out Charles, a 48-year-old software developer in Blythewood, South Carolina, may not get a tax cut at all. He and his wife don’t have children and won’t be able to benefit from an enhanced child tax credit -- and they’ll be losing some benefits including unlimited state and local tax deductions. An online calculator showed Charles he’ll break even, and his wife, a professor who files separately, will probably see a tax increase.