When it comes to having kids, there are some great things
about being a parent…as well as some not so great things.Despite the tough
parts and all the responsibilities that go along with parenthood, however,
there are some perks, including financial ones! In fact, there are actually
quite a few tax breaks and credits that you should know about and take
advantage of if you’re a parent.
The Dependent Exemption
First things first, when you have a child of your own or
even any kind of dependent, you can claim a dependent exemption on your taxes.
This amount varies per year, but the most recent figure was $4,050 per
dependent. With this exemption, you’ll be able to reduce your taxable income,
which can really help when it comes to lowering your taxes overall.
Child Care/ Dependent Care Credit
If you have a child or a dependent who is under the age of
13 and whom you have to place in child care or some other kind of supervisory
care while you work or look for work, you are likely eligible for the child and
dependent care credit.
You can get a nice deduction, up to a certain amount, off of
what you pay for qualifying child care. Before applying for this credit, just
make sure you know how much of a deduction you are eligible for, based on
current rates and the number of children/dependents in care, and other factors.
As long as you file the credit correctly, it can really help you to save big!
These are just two of many excellent financial bonuses to
having a child or other dependent, so make sure you are taking advantage of
these and other great money-saving methods for which you are eligible as a
parent/caregiver. Your accountant should also be able to fill you in on any
credits or deductions you may have missed, so it doesn’t hurt to double-check!