Information from IRS
If you are a parent be sure to consider the following tax savers when having your tax return prepared.
- Dependents. Usually, you can claim your child as a dependent and deduct $4,000 for each dependent you are entitled to claim. This amount must be reduced if your income is above certain limits.
- Child Tax Credit. You may be able to claim the Child Tax Credit for each of your qualifying children under the age of 17. The maximum credit is $1,000 per child and if you get less than the full amount of the credit, you may be eligible for the Additional Child Tax Credit.
- Child and Dependent Care Credit. You may be able to claim this credit if you paid for the care of one or more qualifying persons (dependent children under age 13 are among those who qualify). You must have paid for care so that you could work or look for work.
- Earned Income Tax Credit. You may qualify for EITC if you worked but earned less than $53,267 last year. You can get up to $6,242 in EITC and you may qualify with or without children.
- Adoption Credit. You may be able to claim a tax credit for certain costs you paid to adopt a child.
- Education Tax Credits. Education credit can help you with the cost of higher education. Two credits are available: The American Opportunity Tax Credit and the Lifetime Learning Credit. If the credit reduces your tax to less than zero, you may get a refund. If you don’t owe any taxes, you still may qualify. Form 8863 must also be used when filing a return to claim these credits.
- Student Loan Interest. You may be able to deduct interest you paid on a qualified student loan and this benefit may be claimed even if you do not itemize your deductions.
- Self-employed Health Insurance Deduction. If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid during the year.
Unclear on what deductions you may qualify for? Give us a call and we will assist with determining the best deductions for your situation.
