Tax Tips 101

If you have a child turning 17 this year, you may want to adjust your withholding!

Just a reminder the child tax credit that nets you a $1,000 credit against your taxes for each child, is only for children under the age of 17. I have seen many people get a bit of a shock because they forget that they lose that $1,000 when their child turns 17. Of course, we all know how much cheaper our children become when they turn 17, so this rule makes total sense ... right! NOT!

If you don’t want to have that surprise when you file your tax return, you can fill out a new W-4 with your employer to adjust your withholding. You can actually mark your W-4 to have an additional amount taken out. At least $20 more per week will adjust for the loss of the credit (per child).

Barb Chambers, CPA resides in McNabb. She can be reached at 815-882-2437 or 815-252-2427 or at Baccpa1@gmail.com.