The Springer Law Firm
Call Us Today To Schedule Your Consultation
281-616-7540

Your HOMETOWN Lawyers

Tax credit aims to help parents support children through college

It's always been expensive to raise a child, and that's no different in 2018. A new child tax credit could help you reduce some of the expenses, though, thanks to the Tax Cuts and Jobs Act of 2017. The Child Tax Credit is intended to increase in 2018 as well as to increase the number of people who benefit from it.

Tax credits are just one tool used by Congress to help obtain certain outcomes wished by the government. For instance, the original act in 1997 was aimed at helping middle-class families have enough money to raise children in the United States. Over time, that's changed and now, thanks to the newest updates to law, upper middle class families have access to these tax credits, too.

A credit is actually worth what it says on paper, which makes it better than a deduction. Deductions are, generally, not dollar for dollar, but credits are. If you don't owe taxes, the credit could even come to you in the form of a payment from the government.

A good way to use a credit like this is to fund the child's 529, which is a fund in which the money can grow with no taxes applies. If these funds are used for qualified education expenses in the future, no taxes have to be paid, making every investment one with little risk. With around 72 percent of parents putting away savings toward higher education, adding more funds to a 529 could be the right way to guarantee your child a solid education in the future.

Source: Forbes, "How The New Child Tax Credit Might Help You Pay For College," Megan Gorman, May 13, 2018

No Comments

Leave a comment
Comment Information

We have Been Recognized By

Email Us For a Response

What Can We Do To Help?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Springer Law Firm

21815 Oak Park Trails Drive
Katy, TX 77450

Phone: 281-616-7540
Katy Law Office Map

Review us