It’s tax time, and with the cost of raising kids skyrocketing, parents will want to save every penny possible in taxes. Here are 5 tax credits you don’t want to miss.
- Child Tax Credit – This federal credit is worth up to $2000 per qualifying dependent. Dependents must have a Social Security Number. Only parents with incomes under $200,000 for someone filing single or $400,000 for a couple are eligible for the full amount.
- Earned Income Tax Credit – Lower income families may qualify for a credit worth up to $7,430.
- Child and Dependent Credit – If you pay for childcare while you work or look for work, you can claim a credit of up to $3000 for a single person or $6,000 for a couple for expenses like daycare and daycare for kids under 13 or for older children disabilities who can’t look after themselves.
- AOTC Tax Credit – Parents can take an annual credit of up to $2500 for money they spend on the first four years of their child’s higher education.
- Student Loan Interest Deduction – If you’re paying on a student loan for a child, you may be able to deduct up to $2500 in credits.
Talk to a tax professional to find out if you’re eligible.