Saving on Taxes When You Have a Family

Having children and a family of your own is a wonderful thing. In fact, it’s what many people dream of. However, like everything in life, it comes with expenses and taxation.  

The good news is that there are many tax breaks and deductions available to parents and parents-to-be. And, if you take advantage of all the savings available to you, you can enjoy your family and your kids even more.

The Dependent Care Plan

Your employer likely offers a dependent care plan. If so, be sure to put money into this plan. It will be tax-free! And, though it may reduce the amount you get for your child and dependent care credit, it can still help you to save in the long run.

Joint Filing

When possible, always try to file your taxes jointly. If you and your spouse file separately, you’ll miss out on deductions and credits.

In fact, the only time you should file separately from a spouse is if you’re soon to be divorced or if the spouse has serious financial problems and you don’t want them to affect you.

The Child Tax Credit

Make sure you always claim the Child Tax Credit on your taxes if you are eligible for it. This $2000 credit can be claimed for every dependent child who is under 17, which can really add up. Married couples who make up to $400,000 and single parents who make up to $200,000 are typically eligible.

As you can see, there are many ways to save without foregoing having children. In fact, when it comes to taxes, having little ones can actually save you some money. Just make sure you carefully research tax savings available to you and then take full advantage of every deduction and credit you can.