Asian Investors Brace for Renewed Tariff Fallout: Markets Wrap
Stock futures pointed to declines in Tokyo and Sydney, after Wall Street equities fell from all-time highs and the dollar climbed. US equity contracts dropped in early Asia trading.
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Yahoo
3 hours ago
- Yahoo
Child tax credit: Who's eligible, how to claim it and more
In the news The tax megabill that President Donald Trump signed into law on July 4 boosted the value of the child tax credit in 2025 to $2,200, up from $2,000. After 2025, the value of the child tax credit will be adjusted for inflation each year. The new law also makes this tax credit's current income limits permanent: In 2025, the child tax credit starts to phase out for married-filing-jointly filers with income above $400,000 and for all other filers with income above $200,000. The same limits were in place for 2024. But the new law also tightened eligibility rules. Before, only the child for whom the credit was claimed needed to have a Social Security number. Now, the parent must have one too (if married filing jointly, one spouse must have a Social Security number). The child tax credit is a valuable federal tax break for families, aimed at helping defray the costs of raising children. Taxpayers who qualify can cut their tax bill by up to $2,200 in 2025, up from $2,000 in 2024, for each qualifying dependent under age 17. And some taxpayers may qualify for up to $1,700 of that to be paid out to them as a refund, as part of the additional child tax credit. Learn more: Trump signs massive megabill into law — here's what it means for your money The child tax credit is one of a few tax breaks eligible taxpayers with dependent children can claim. Don't confuse it with the child and dependent care credit, which helps offset the costs of child care, or the earned income tax credit, for lower-income working people. Plus, there's a credit for other dependents — those that don't qualify for the child tax credit — worth up to $500 (its name is just that: credit for other dependents). Keep in mind that a tax credit reduces your tax bill dollar-for-dollar, unlike a tax deduction, which simply reduces how much of your income is subject to taxes. Learn more: Tax credits vs. tax deductions: What's the difference? How to qualify for the child tax credit To qualify for the child tax credit, you must meet some specific requirements: Each qualifying child must be under age 17 at the end of the tax year. For example, your child must be 16 or younger at the end of 2025 if you want to claim the child tax credit on your 2025 tax return, which is due April 15, 2026. If your modified adjusted gross income (MAGI) exceeds certain thresholds — $400,000 for married couples who file jointly and $200,000 for all other filers — your credit amount is reduced by $50 for each $1,000 of income exceeding the threshold. For most taxpayers, their MAGI for the child tax credit is the same as their AGI. (MAGI for the purposes of the child tax credit is calculated by adding these items back into your AGI: income you excluded as a resident of Puerto Rico or American Samoa, foreign earned income and housing that you excluded from your income, and the tax deduction for foreign housing.) Each qualifying child must be a U.S. citizen, U.S. national or resident alien and have a valid Social Security number. As of 2025, the taxpayer claiming the child tax credit also must have a Social Security number (if it's a married-filing-jointly return, at least one of the spouses must have a Social Security number). The child must be a legally recognized child, stepchild, foster child, sibling, half-brother or half-sister or a descendant of one of these categories (such as a grandchild, niece or nephew). The child must not have provided more than half of their own financial support for the year. The child must have lived with you for more than half of the year. You must claim the child as a dependent on your tax return. If you meet all the eligibility factors, including the income requirements, you can claim the full $2,200 credit per eligible dependent child for 2025 ($2,000 in 2024). Taxpayers with higher incomes may claim a partial credit. For example, if you're married and filing jointly with two qualifying children and your modified adjusted gross income is $350,000, then you can claim $4,400 ($2,200 per child). However, the amount you can claim is phased out if your household income, as married filing jointly taxpayers, is greater than $400,000. How to claim the child tax credit Most reputable tax software products will calculate your eligibility for the child tax credit and the refundable additional child tax credit. But if you're wondering how the credit is calculated, check out IRS Schedule 8812. Completing that form tells you how much of the child tax credit you can claim, including any refundable portion (aka the additional child tax credit). The IRS has step-by-step instructions on how to fill out Schedule 8812. Or you can consult with a tax preparer to determine if you're eligible for the child tax credit based on your income and filing status. Here are five tips to find the best tax preparer for you. Get started: Match with an advisor who can help you achieve your financial goals The additional child tax credit: How it works If you break even on your taxes — that is, you don't owe any money — then the child tax credit can't help you. However, you may qualify to claim the additional child tax credit. This refundable portion of the child tax credit allows you to receive up to $1,700 per qualifying child in 2025 as a refund — even after your tax bill is reduced to zero. (The amount of the additional child tax credit is adjusted for inflation each year.) The additional child tax credit is calculated at 15 percent for every dollar of earned income starting at $2,500. Again, filling out Schedule 8812 can help you calculate the amount of your refundable child tax credit. Learn more: Tax refund schedule: How long it takes to get your tax refund Some states also offer child tax credits In addition to the federal child tax credit, 17 states plus the District of Columbia offer a child tax credit, according to the National Conference of State Legislatures: Arizona, California, Colorado, Georgia, Idaho, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon, Utah and Vermont. And 12 of those 17 states, plus the District of Columbia, have made their child tax credit refundable: California, Colorado, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon and Vermont. Eligibility and benefits vary, so check with your state tax website for details. Learn more: Check your state's income tax rate, sales tax rate and more
Yahoo
4 hours ago
- Yahoo
Stunning amount Trump's Scotland trip will cost taxpayers – largely to promote his golf courses there: report
Donald Trump's five-day golf trip to Scotland is expected to cost U.S. taxpayers millions of dollars, according to a new report. The president departed Joint Base Andrews in Maryland aboard Air Force One on Friday morning, hoping to leave behind the MAGA firestorm around his administration's handling of the Jeffrey Epstein case. After an estimated 43 golf trips in the first six months of his second term, Trump's Scottish visit for the opening of a new course, being billed as 'the greatest 36 holes' in the sport, is expected to cost about $9.7 million, according to an analysis by HuffPost. Those estimates are based on a Government Accountability Office report detailing the costs of Trump's 2017 trips to his country club in Palm Beach, Florida. Costs were not adjusted for inflation, meaning they could be substantially higher in today's terms. This trip will mark the president's fifth international trip since beginning his second term in January. Designated by the White House as a 'work trip,' Trump is expected to visit his Turnberry and Menie golf courses, as well as open the new MacLeod Course at Trump International Golf Links near Aberdeen, dedicated to his mother. He is also expected to meet with British Prime Minister Keir Starmer to discuss trade and Scotland's First Minister, John Swinney. Expenses factored into the upcoming trip include Secret Service overtime, the hourly operating cost of Air Force One for its 3,000-mile transatlantic journey, and the transportation of Marine One helicopters and motorcade vehicles aboard C-17 aircraft. According to the GAO report, the hourly operating cost to run Air Force One is just over $273,000, meaning the total for flights to and from Scotland alone would be around $3.8 million. Marine One helicopters cost between $16,700 and nearly $20,000 per hour to operate, according to Pentagon data for fiscal year 2022. Estimates also include the need for a second aircraft for Trump aides who would not travel domestically. HuffPost has based its forecast on a modified Boeing 757 being used, which is much cheaper to run than Air Force One, a Boeing 747. According to previous reporting by the news outlet's analysts, Trump's golfing trip bill for his first term, including taxpayer-funded travel and security, totaled $151.5 million, and a total of 293 days at his own resorts. 'We're at a point where the Trump administration is so intertwined with the Trump business that he doesn't seem to see much of a difference,' Jordan Libowitz, vice president of Citizens for Responsibility and Ethics in Washington, told ABC News. 'It's as if the White House were almost an arm of the Trump Organization.' A Trump spokesperson called the report of the Scotland trip expense 'deeply pathetic and transparent' and cited Joe Biden's frequent trips to his beach house in addition to his unrelated use of an autopen to sign orders, before saying, 'While in Scotland, the president will meet with Prime Minister Starmer to refine the historic trade deal that expanded markets for American farmers and workers and strengthen our treasured relationship with the United Kingdom.' Trump's visit is expected to demand a major police operation, which is expected to cost Scottish taxpayers millions of pounds, as protests are planned throughout the weekend. During the president's four-day trip to Scotland in 2018, the BBC reported that more than 5,000 police officers were deployed, with the U.K. Treasury contributing about £5 million ($6.8 million) to help cover the costs incurred by the Scottish police force. A decade ago, Trump frequently and venomously blasted then-President Barack Obama for leaving the White House for the golf course. 'I don't have time for that,' he said at a campaign rally in 2015. 'I love golf. I think it's one of the greats, but I don't have time.' Trump went on to play about 260 rounds of golf during his first term, according to estimates by The Washington Post, and declared himself the 'best golfer of all the rich people.' This term, the president's expensive golf trips have not gone unnoticed. At the House's Delivering on Government Efficiency March, Democratic Congresswoman Jasmine Crockett criticized the Trump administration for what she called hypocrisy in its government spending. 'If we are gonna talk about efficiency,' she began, taking a jab at Trump's government slashing force, the Department of Government Efficiency. 'Let's talk about the fact that, as of March 30, Trump's golfing has cost us approximately $26 million.' 'Maybe we need to talk about the president and his golfing habits,' the Texas lawmaker added.
Yahoo
4 hours ago
- Yahoo
Jim Cramer to Kohl's Short Sellers: 'Cover and Move On.'
Kohl's Corporation (NYSE:KSS) is one of the stocks that Jim Cramer looked at. During the episode, Cramer suggested that the short sellers cover their shorts and 'move on.' He commented: 'It all started on social media. I saw it on Reddit's Wall Street Bets section, it's time to buy the stock of Kohl's. Why? Because of the gigantic short position… It was all about the short position, which is close to 50%… of the float, yet nearly half of the shares that trade were sold short. Whenever you have such a huge short position, it's easy for buyers to get together online and orchestrate a short squeeze, defenestrating the hedge funds that are shorting it, to which I say, what the heck do the shorts, not the memesters, but the shorts think they're doing here?… This chain with the balance sheet that isn't all that bad simply should not be that heavily shorted down here. It's moronic. Kohl's may not be great, but it isn't terrible either… A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels Kohl's (NYSE:KSS) is an omnichannel retailer offering apparel, footwear, beauty, accessories, and home products through physical stores and online. While we acknowledge the potential of KSS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
