Attention Parents: Keep These Tips in Mind While Filing Your Taxes
If you’re a parent, you know that kids are expensive. They’re fun, they’re fulfilling… but they’re expensive! However, when it comes to paying your taxes, your kids can actually save you money. Patch.com identifies several specific ways that parents can reduce their tax burden:
Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012. For more information, see IRS Publication 501, Exemptions, Standard Deduction and Filing Information.
Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit. For more information, see the instructions for Schedule 8812, Child Tax Credit, and Publication 972, Child Tax Credit.
Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.
Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it. Use the EITC Assistant to find out if you qualify. See Publication 596, Earned Income Tax Credit.
Adoption Credit. You may be able to take a tax credit for certain expenses you incurred to adopt a child. For details about this credit, see the instructions for IRS Form 8839, Qualified Adoption Expenses.
You’ve worked hard for your money all year long—so don’t pay the IRS a penny more than you must. As a parent, there are a number of opportunities to save money on your taxes. If you’d like to learn more, or if you’d like help maximizing deducting and credits when you file your taxes, please get in touch with us today!