We know you parents are busy and have limited time to find out all about the tax deductions you may qualify for, so we’re taking the time to save you time!
Jim Blankenship, CFP® has helped identify the top 10 tax breaks for parents that will guarantee you save big money each year you file your taxes:
- Child Tax Credit: This is a credit for any child under the age of 17. You can be eligible for as much as $1,000 per child. Here are 10 facts from the IRS about the Child Tax Credit.
- Child and Dependent Care Credit: Pay someone to take care of your child while you work? Then this credit is for you. See the IRS’s exact requirements to qualify.
- Earned Income Tax Credit: The “EITC” is a tax credit for individuals with earned income under $48,362 or $48,362 for married filing jointly. As the IRS states, it’s a way of “putting more money into your pocket”. Check to see if you qualify here.
- Adoption Credit: The adoption credit gives you a credit of up to $13,170 if you adopted or tried to adopt a child. You can view the IRS FAQs on the adoption tax credit here.
- Children with Investment Income: While more a tax lesson, than a tax break, if you have a young savvy investor in the family, your child’s investment income above $1,900 can be taxed at your tax rate.
You can check out the other 5 tax breaks for parents.