Eight Tax Savers for Parents

The tax season is upon us! Your children may help you qualify for valuable tax benefits. Here are eight tax benefits parents should look out for when filing federal tax return this year:

• Dependents—In most cases, you can claim your child as a dependent—even a newborn child. For more details, see Publication 501.
• Child Tax Credit—You may be eligible for up to $1,000 credit for each of your qualifying children under the age of 17. If you get less than the full credit, you may be eligible for the Additional Child Tax Credit. For more details, see the instructions for Schedule 8812 and Publication 972.
• Child and Dependent Care Credit—You may be able to claim this credit if you paid someone to take care for qualifying person(s)—including your dependent children under age 13—so you could work or look for work. For more information, see Publication 503.
• Earned Income Tax Credit—If you earned less than $54,427 last year, you could receive this credit. Families with qualifying children may be eligible for up to $6,143. Use the EITC Assistant tool to find out if you qualify or see Publication 596.
• Adoption Credit—You may be able to claim a tax credit for certain expenses you paid to adopt a child. For details, see the instructions for Form 8839.
• Higher Education Credit—If you paid for higher education for yourself or an immediate family member, you may qualify for either of two education tax credits—the American Opportunity Credit or the Lifetime Learning Credit. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000. See Publication 970 for more information.
• Student Loan Interest—You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize deductions. For details, see Publication 970.
• Self-employed Health Insurance Deduction—If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your children under age 27, under the Affordable Care Act. See instructions for details.

Forms and publications on these topics are available at www.irs.gov/Forms-&-Pubs or by calling 800-TAX-FORM (800-829-3676).

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Source: www.irs.gov