2018 Family Tax Credits Guide:
Eligibility & Claims
The 2018 family tax credits guide breaks down who qualified for the Child Tax Credit (up to $2,000 per qualifying child), the refundable Additional Child Tax Credit (up to $1,400 per qualifying child), the Earned Income Tax Credit, and the Child and Dependent Care Credit, along with the forms and records needed to claim each one. For tax year 2018, eligibility hinged on income limits, filing status, qualifying-child tests, valid Social Security numbers, and—for care-related credits—complete childcare provider information, with credits claimed on Form 1040 using Schedule 8812, Schedule EIC, or Form 2441 as applicable.
Here’s what most families don’t realize: the IRS reports that missing or incorrect provider details alone can reduce or entirely wipe out the childcare credit, and I’ve watched otherwise organized households lose thousands because of one blank field. Over my 20+ years leading Complete Controller, I’ve helped families and small-business owners across every industry untangle these exact scenarios—and I can tell you the difference between a paid credit and a denied one almost always comes down to documentation, not tax law. In this guide, I’ll walk you through which credits to check, how to test eligibility for each dependent, the step-by-step claiming process, and the compliance moves that keep your refund safe.
What is the 2018 family tax credits guide and how do you use it?
- The short answer: It’s a roadmap covering the Child Tax Credit, Additional Child Tax Credit, EITC, and Child and Dependent Care Credit—including who qualifies, how much they’re worth, and which forms to file.
- Child Tax Credit: Up to $2,000 per qualifying child under 17, phased out above $400,000 (joint) or $200,000 (other filers).
- Additional Child Tax Credit: Refundable portion up to $1,400 per child, with the earned-income threshold lowered from $3,000 to $2,500.
- Earned Income Tax Credit: Refundable credit ranging from $519 (no kids) to $6,431 (three or more kids) based on income and family size.
- Child and Dependent Care Credit: Offsets work-related care costs, capped at $3,000 for one qualifying person or $6,000 for two or more.
Which 2018 Family Tax Credits Should You Check First?
“Family tax credits” isn’t one benefit—it’s a cluster of separate credits with independent rules. Sorting them out early prevents the most common filing mistake: assuming one credit covers every child in the household.
Comparing the major 2018 credits
| Credit | Purpose | Refundable? | 2018 Maximum |
| Child Tax Credit | Support for qualifying children under 17 | Generally no | $2,000 per child |
| Additional Child Tax Credit | Refundable portion of CTC | Yes | $1,400 per child |
| Earned Income Tax Credit | Low-to-moderate income workers | Yes | $519–$6,431 |
| Child & Dependent Care Credit | Work-related care expenses | No | $1,050–$2,100 |
Refundable vs. Nonrefundable: Why it matters
A refundable credit can generate a refund even after your tax bill hits zero. A nonrefundable credit can only wipe out what you owe—not a penny more. This distinction is the single biggest source of confusion I see, because tax software may display a credit amount without showing you how much you’ll actually receive.
Key changes to family tax credits in 2018
The Tax Cuts and Jobs Act reshaped the landscape:
- Child Tax Credit doubled from $1,000 to $2,000 per child
- Income phase-out jumped to $400,000 (joint) / $200,000 (other)
- Refundable portion increased to $1,400 per child
- Earned-income floor for the refundable portion dropped to $2,500
- New Credit for Other Dependents ($500 nonrefundable) launched for dependents who didn’t qualify as a “qualifying child”
Tax records getting complicated? Complete Controller can help keep your books accurate, organized, and ready for tax time.
Eligibility Requirements for 2018 Family Tax Credits
Tax credit eligibility comes down to a series of yes/no questions applied to each dependent separately. Skipping this step is how families accidentally double-claim a child or miss a credit entirely.
Qualifying child tests for the child tax credit
For 2018, the child needed to:
- Be your son, daughter, stepchild, foster child, sibling, or a descendant of any of them
- Be under 17 at year-end
- Not provide more than half of their own support
- Live with you more than half the year
- Be claimed as a dependent on your return
- Have a valid Social Security number issued before the return’s due date
Earned income tax credit eligibility
The EITC scales with earned income, AGI, and number of qualifying children. According to the IRS, 2018 maximums were $519 (no children), $3,461 (one child), $5,716 (two children), and $6,431 (three or more)—useful benchmarks before you run the full test. Investment income limits, valid SSNs, and filing-status restrictions also apply.
Dependents tax relief for older children
If your dependent aged out of the Child Tax Credit, the new Credit for Other Dependents may apply—covering older kids in college, elderly parents, or qualifying relatives who meet dependency rules.
How to Claim Family Tax Credits in 2018
Claiming these credits is chronological. Rushing any step invites an IRS notice.
Step 1: Gather identity and household records. Social Security numbers, birth dates, proof of residency (school, medical, lease records), and custody documents when relevant. Solid bookkeeping essentials make this step painless.
Step 2: Confirm filing status. Single, head of household, married filing jointly, married filing separately, or qualifying surviving spouse—each carries different thresholds.
Step 3: Test each dependent separately. A child may qualify for the CTC but not the EITC, or vice versa. Don’t assume.
Step 4: Calculate earned income and AGI. These figures drive the EITC and Additional Child Tax Credit calculations. For self-employed families, reconciling accounting statements before you calculate is non-negotiable.
Step 5: Complete the right forms.
- Form 1040 — main return
- Schedule 8812 — Child Tax Credit and Additional Child Tax Credit
- Schedule EIC — Earned Income Credit with qualifying children
- Form 2441 — Child and Dependent Care Credit
- Form 8862 — required after a prior credit disallowance
Step 6: Review before filing. Match names to SSN records, verify childcare provider details, and expect delays: the IRS confirms that EITC and refundable CTC refunds cannot be issued before mid-February due to the PATH Act anti-fraud rule.
Childcare Tax Credit: What Expenses and Providers Counted?
The childcare tax credit requires more than just receipts—it requires the right kind of receipts. Care had to enable you (and your spouse, if filing jointly) to work or actively look for work.
Qualifying expenses and persons
Daycare, preschool, before- and after-school care, in-home care, and summer day camps generally counted. Overnight camps and kindergarten tuition did not. The qualifying person was typically a dependent under 13 or a spouse/dependent unable to self-care who lived with you more than half the year.
Provider information is non-negotiable
You must report the provider’s name, address, and taxpayer identification number. Miss any of these, and the credit can be reduced or denied. If you run a home-based business, my article on maximizing home business tax benefits covers how to keep these records clean.
2018 Calculation
Qualifying expenses were capped at $3,000 (one qualifying person) or $6,000 (two or more), with the credit rate ranging from 20% to 35% based on AGI—yielding a max credit of $1,050 or $2,100.
Common Claiming Errors and Real-World Documentation Lessons
Most denials trace back to the same handful of mistakes: transposed SSNs, duplicate dependents claimed by another parent, weak residency proof, wrong filing status, or missing provider details.
Case study: When residency proof falls short
In Smith v. Commissioner, T.C. Memo. 2019-12, a taxpayer lost both the EITC and Child Tax Credit because she couldn’t prove her children lived with her more than half the year. The court emphasized that school and medical records showing the child’s address carry more weight than a parent’s testimony alone. The lesson: save the documents as events happen, not the night before filing.
Divorced or separated parents
Only one taxpayer can claim a child for these credits in a given year. Review custody schedules, actual residence, and Form 8332 release-of-claim rules before either parent files.
Final Thoughts: Claim What You Can Substantiate
The families who win at tax season aren’t the ones with the most complicated strategies—they’re the ones with the cleanest records. Identify every credit you might qualify for, test each dependent separately, calculate earned income accurately, complete the right forms, and preserve every scrap of documentation. That’s the entire playbook.
In two decades of running Complete Controller, I’ve seen brilliant tax planning fall apart because a shoebox of receipts couldn’t back it up—and I’ve seen modest households capture thousands because their books were tight. If custody, self-employment income, amended returns, or a prior credit disallowance are in your picture, don’t guess. Visit Complete Controller to get your bookkeeping organized and your financial records ready for whatever this tax season—or any that follows—throws at you.
Frequently Asked Questions About the 2018 Family Tax Credits Guide
What was the Child Tax Credit amount for 2018?
Up to $2,000 per qualifying child under 17, subject to income phase-outs starting at $400,000 (married filing jointly) or $200,000 (all other filers) and limited by your tax liability for the nonrefundable portion.
Who qualified for the Additional Child Tax Credit in 2018?
Taxpayers who met the qualifying-child rules but couldn’t use the full nonrefundable Child Tax Credit could claim up to $1,400 per child as a refundable credit, provided they had at least $2,500 in earned income.
Can I claim the Child Tax Credit and Earned Income Tax Credit together?
Yes. The credits have separate eligibility tests, so if you meet the rules for each, you can claim both on the same return.
Why was my 2018 refund delayed even though I filed early?
The PATH Act prohibits the IRS from issuing refunds tied to the EITC or refundable Child Tax Credit before mid-February—even if your return was accepted in January.
What happens if another parent claimed my child?
Only one taxpayer can claim a child for these credits in a given year. Review custody agreements, actual residency, and IRS tiebreaker rules before filing—or file by paper with supporting documentation if you’re the rightful claimant.
Sources
- Internal Revenue Service. (2018). Child Tax Credit and Credit for Other Dependents, Publication 972. https://www.irs.gov/publications/p972
- Internal Revenue Service. (2018). Earned Income Credit, Publication 596. https://www.irs.gov/publications/p596
- Internal Revenue Service. (2018). Child and Dependent Care Expenses, Publication 503. https://www.irs.gov/publications/p503
- Internal Revenue Service. (2018). Instructions for Form 1040. https://www.irs.gov/forms-pubs/about-form-1040
- Internal Revenue Service. “Child and Dependent Care Credit Information.” https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit-information
- Internal Revenue Service. “Earned Income Tax Credit (EITC).” https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc
- Internal Revenue Service. “Tax Season Refund Frequently Asked Questions.” https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions
- Lauber, Albert G. Smith v. Commissioner, T.C. Memo. 2019-12. United States Tax Court, Feb. 6, 2019. https://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11852
- Congressional Research Service. (2018). Child and Dependent Care Tax Benefits: How They Work and Who Receives Them.
- Complete Controller. “Importance of Reconciling Your Accounting Statements Regularly.” https://www.completecontroller.com/importance-of-reconciling-your-accounting-statements-regularly/
- Complete Controller. “Maximizing Home Business Tax Benefits.” https://www.completecontroller.com/maximizing-home-business-tax-benefits/
- Complete Controller. “Business Bookkeeping Essentials.” https://www.completecontroller.com/business-bookkeeping-essentials/
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
Brittany McMillen
Brittany McMillen