7 Tax Saving Tips For Parents | Accounting and Tax Updates

7 Tax Saving Tips for Parents

During this tax season, we would like to remind taxpayers with children that they may qualify for certain tax benefits. We can help you get all the deductions and credits you qualify for.

Child Tax Credit

Generally, taxpayers can claim the Child Tax Credit for each qualifying child under the age of 17. The maximum credit is $1,000 per child which can reduce your tax bill dollar-for-dollar.

Child and Dependent Care Credit

Taxpayers may be able to claim this credit if they paid for the care of one or more qualifying persons. Dependent children under age 13 are among those who qualify. Taxpayers must have paid for care so that they could work or look for work.

Education Tax Credits

An education credit can help with the cost of higher education. These credits may reduce the amount of tax owed. Taxpayers may qualify even if they owe no tax.

Student Loan Interest

Taxpayers may be able to deduct interest paid on a qualified student loan. They can claim this benefit even if they do not itemize deductions.

Earned Income Tax Credit

Taxpayers who worked but earned less than $53,505 last year may qualify for EITC. They can get up to $6,269 in EITC. Taxpayers may qualify with or without children. We can ensure that you get maximum allowed EITC.

Self-employed Health Insurance Deduction

Taxpayers who were self-employed and paid for health insurance may be able to deduct premiums paid during the year.

Dependent

Parents can claim their child as a dependent. Parents can generally deduct $4,050 for each qualified dependent. Qualifying children must be under 19 years of age at the end of the year to qualify (under 24 for students).