(4/14/99)
Thanks to the Taxpayer Relief Act of 1997, many taxpayers now recieve a
$400 income tax credit per child from their federal income tax.
That tax credit means more money in the pockets of Utah families this
year.
Jim and Lisa Carter usually wait until April 15th to file.
But this year filed early -- to see the difference it would make.
It payed off!
The Carters received a $1,200 tax credit for their three kids.
They say it was their first tax break in a long time.
Lisa says, "Being self-employed, we're taxed higher as it is, so we've always
felt picked on when it comes to taxes."
The extra money allows the Carters to do things they've always wanted to do.
Jim explains, "We've done some improvements to our backyard and putting in a
bathroom in the basement and planning out our vacation and what we're going to
do this summer. We want to go do some things in the state and possibly take a
small trip down to Las Vegas."
Another plus to the tax credit - parents are allowed to claim both the
credit and the dependency exemption.
The tax credit has a few reasonable requirements - the child must be
under the age of 17 and be a U.S. citizen or resident.
Tax experts estimate that some families - especially in Utah with a large
number of kids - won't have to pay taxes at all.
But there is a down side to the credit-- especially for families making
more than $110,000 a year.
C.P.A. Nathan Gleave explains, "Typically if somebody gets up there they're
making $150- $200- thousand, the I.R.S. isn't as, or doesn't focus on giving
this particular type of credit to people who make that kind of money. This is
supposed to put dollars in the pockets of people in that different lower area."
For more information on the federal child tax credit, call our Family Now
information line at 1-800-575-5751.
