Got kids? They may have an impact on your tax situation. Here are eight tax credits and deductions that can help lower your tax burden.
Dependents: In most cases, a child can be claimed as a dependent in the year they were born.
Child Tax Credit: You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit.
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Child and Dependent Care Credit: You may be able to claim this credit if you pay someone to care for your child under age 13 while you work or look for work.
Earned Income Tax Credit: The EITC is a benefit for certain people who work and have earned income from wages, self-employment, or farming.
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Adoption Credit: You may be able to take a tax credit for qualifying expenses paid to adopt a child.
Coverdell Education Savings Account: This savings account is used to pay qualified expenses at an eligible educational institution. Contributions are not deductible; however, qualified distributions generally are tax-free.
Higher Education Credits: Education tax credits can help offset the costs of education. T
Student Loan Interest: You may be able to deduct interest you pay on a qualified student loan.
As you can see, having children can make a big impact on your tax profile. If you're a parent, we'll go over your situation with you to make sure you're getting the appropriate credits and deductions.
