On August 5th, 1997, President Clinton signed the Tax Relief Act of 1997. The majority of the changes apply for years beginning after December 31st, 1997. Exceptions to this include the Capital Gains Tax relief and the new exclusion for sellers of their principal residence.
HIGHLIGHTS OF NEW TAX ACT
TAX CREDIT FOR EACH QUALIFYING DEPENDENT CHILD UNDER AGE 18.
Beginning in 1998 parents get a tax credit equal to $400.00, $500.00 after 1998, for each qualifying dependent child under age 18. A phase out of the tax credit applies for joint taxpayers whose adjusted gross income exceeds $110,000.00.