Here are some tax tips for parents to help lower their tax bill and get a bigger refund!
For any tax debt help and queries, Please Call (855) 549-7829 or Visit http://www.taxassistancegroup.org
You can also follow us on :
Twitter: https://twitter.com/Tax_Assistance
Facebook: https://www.facebook.com/Taxassistancegroup.org
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Money Saving Tax Tips for Parents
1. Money Saving Tax
Tips for Parents
Here are some tax tips for
parents to help lower their tax bill
and get a bigger refund!
2. Dependent Exemption
Your child is likely to
qualify to be your
dependent, making you
eligible to take a
dependent exemption.
An exemption, much like
a deduction, reduces
your taxable income,
which can lower your tax
obligation.
3. Child Tax Credit
With the Child Tax Credit,
you may be able to reduce
your tax bill by up to
$1,000 for each qualifying
child under the age of 17. If
the amount of your Child
Tax Credit is greater than
the amount of income tax
you owe, you may be able
to claim the Additional
Child Tax Credit.
4. Child and Dependent Care Credit
If you paid someone to care
for your child, spouse or
dependent last year, you may
be able to claim the Child and
Dependent Care Credit. You
may qualify if you paid for
child/dependent care so that
you (and your spouse, if
married) could work or look
for work. You and your
spouse must have earned
income during the tax year to
claim the child and dependent
care credit.
.
5. Earned Income Tax Credit
The Earned Income Tax Credit
is a tax credit for low to
moderate-income working
families. It is a refundable tax
credit, which means if the
credit reduces your tax bill to
$0, you receive the remaining
balance as a refund. The
amount of the credit depends
upon the number of children
in the household as well as
the your income for the year.
The credit starts to phase out
once your income rises above
a certain threshold.
6. Adoption Tax Credit
The adoption tax credit can offset
the costs of adopting a child.
Income limits apply, and you can
only claim a certain dollar amount
per adoptive child. Some of the
expenses that may qualify for this
credit include: court and attorney
fees, related travel expenses, related
meal expenses. Adopting a child
with special needs can allow you to
claim the entire adoption credit,
even if it exceeds your actual
expenses. However, it is
nonrefundable, so it can't exceed
the amount of your actual tax
liability.
7. Higher Education Tax Credits
Parents can claim either of
two credits for higher
education: The American
Opportunity Tax Credit
(AOTC) or the Lifetime
Learning Credit (LLC).
The AOTC can be used for up
to four years. The Lifetime
Learning Credit has no limit
as long as you or your
dependent child participates
in an eligible degree program.
8. Student Loan Interest Deduction
Parents can deduct interest
payments on certain student
loans. The deduction can
reduce the amount of taxable
income and possibly lower
your tax bill. Student
loans must come from a
qualified institution and your
child must have been enrolled
at least half-time in a degree
program when the loans were
taken out. Income limits apply
based on filing status.
9. Self-Employed Health Insurance
Self-employed parents often
must pay for their own and
their family's health
insurance. If you're self-
employed, generally you
can deduct 100% of the cost
of health insurance premiums
paid for children under the
age of 27. This includes
medical, dental and long-term
care premiums, even if your
adult child isn't a dependent.
10. To Learn More
Call:
(855) 549-7829
Or Visit:
www.taxassistancegroup.org
“8 Money-Saving Tax Tips for Parents.” Intuit TurboTax. Intuit, Inc, 2016. Web. 27 April 2016. <https://turbotax.intuit.com/tax-tools/tax-tips/Family/8-Money-Saving-Tax-Tips-for-Parents/INF29134.html>