Taxes and Dependency Exemptions (Child Tax Credit)wickadmin2019-01-01T12:03:49+00:00
The dependency exemption has been replaced by the child tax credit. The tax exemption directly reduced a parties’ taxable income. A credit reduces the parties’ tax liability. In other words, a dependent exemption is the income you can exclude from taxable income for each of your dependents (typically your children). Under the old tax code, parties could exclude $4,050 for each dependent. Now that number is $0, but, if eligible, parties may claim a child tax credit.