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Should I have more kids?

Posted by Admin Posted on Nov 05 2018

This is generally not a question that you would associate with taxes.  In the past there had been a tax benefit that you received per child.  For 2017 for children under 17, you got a $1,000 credit and a $4,050 tax exemption.  The credit unfortunately started phasing out after adjusted gross income (AGI) of $110,000 for married filing joint, $75,000 for head of household, and $55,000 for single filers. 

 

With the new tax law change starting in 2018, the credit has been doubled to $2,000 and the phase out has been raised to $400,000 (AGI) for married filing joint and to $200,000 for head of household and single filers.  The $4,050 deduction was removed, but most tax rates were lowered, and tax brackets extended.

 

This means more money for many low income filers, and a long unexperienced benefit for higher income filers under $400,000 joint (or $200,000) AGI. 

 

Does this mean that you should have more kids?  You decide.  I imagine that there are other things to consider….