8 Tax Tips for New Parents

Kids are expensive. There is no denying that. However, aside from the obvious, parenting does come with its perks—monetary ones at that. Here are eight (8) perks that will make this whole new parenting thing a little easier on you this tax-season.

1.    Child Tax Credit: You can claim up to $1,000 for every child under the age of 17 in your household, so long as you make less than $75,000 as a single filer, and less than $100,000 as a married couple.

2.    Earned Income Tax Credit: You can earn up to $6,143 with the EITC. Check out http://www.irs.gov/Individuals/EITC-Income-Limits,-Maximum-Credit–Amounts-and-Tax-Law-Updates for rates.

3.    Childcare: Most families can deduct up to $3,000 for one child’s childcare, and up to $6,000 for two. Qualifying childcare includes day care, day camps and before- and after-school programs.

4.    Flexible Spending Accounts: If your employer offers a FSA, take advantage of it, for both healthcare and dependent care. The maximum amount you can shelter is $5,000.

5.    Medical Expenses: if you have high medical expenses, you can deduct total family healthcare expenses that exceed 7.5% of your adjusted gross income.

6.    Adoption Costs: If you adopted a child and the process was finalized in 2014, you’re eligible for up to $13,190 per child in federal tax credits.

7.    College Contributions: Most states offer tax deductions for residents who invest in their state sponsored 529 college savings plans.

8.    If They’re Here, They Can Be Claimed: Even if your child was born in the very last second of the very last minute of the old year, deduct away!

Get the most of your return this year – visit http://www.irsallstar.com/our-services#16 to see how we are the team to help you do just that!