Good News Tax Breaks for Parents

If you have children you can take them as dependents and if they are under 17 at the end of the year you can get up to $1,000 per child in tax credits to off set taxes or be refunded to you.  Depending on your income level you may qualify for Earned Income Tax Credits (EITC).  If you have a child in day care or safe key you can qualify for child care credits.  Thinking of adopting a child.  Adoption credits will offset some of the expenses.  If you child has earned income they may need to file a return.  If they have investment income they may be taxed at your tax rate.  That is called a "kiddie tax".  That is one way the IRS tries to stop parents from putting the investments in the children's name to reduce the tax rate.  Children in college then education credits to cover some of the school costs.  Student loan interest deductions let you reduce you income by the amount of interest paid.  Health insurance through work or as a self employed person allows for coverage of your children up to age 27.  Lots of new and different things going on.  Call us and we can help.