Children may raise your blood pressure but they can lower your taxes. Here’s how:
Depending on your situation, there are a few ways children can lower your taxable income.
- For children under seventeen, you may be eligible for the Child Tax Credit or the Additional Child Tax Credit.
- Starting in the year your child is born, you can also claim them as a dependent up until 26 if they are in school.
- If you pay for childcare while working or looking for work, you may be eligible for the Child and Dependent Care Credit if your child is under thirteen. You’ll want to make sure you have receipts for your childcare however.
- There are also expenses that can be deducted when adopting a child under the Adoption Credit.
The Earned Income Tax Credit is for taxpayers that work and have earned income from wages, self-employment, or farming. The Earned Income Tax Credit (or EITC) lowers the amount of tax you may owe and it might also result in a refund. - For children in college, there are also credits for student loan interest as well as the higher education tax credits.
We can help you make sure you are getting all the tax benefits available to you. Contact us for help!
Image courtesy of Sharon Drummond on flickr; reproduced under Creative Commons 2.0