This year, millions of American families can enjoy a $2,000-per-child tax break for children under the age of 17 because of the expansion of the child tax credit, according to this article from The Wall Street Journal.
In addition, the overhaul even raises the full credit income limit. “Many affluent families earning between about $140,000 and $400,000 who didn’t get a tax break for their children in the past, will now qualify for one,” according to one CPA.
A family (two parents and three children below age 17) on the 28 percent tax bracket, with $210,000 of taxable income, who got a savings of $3,400 in tax for 2017 would receive a $6,000 savings for 2018.
Life insurance policyholders are advised to review their coverage as they can make the most of additional benefits under the new tax law, an expert on Kiplinger writes. For example, those who bought life insurance to cover estate tax will no longer face taxation, as the federal estate-tax exemption has been doubled to $11.18 million this year under the new tax.