Children may help reduce the amount of taxes owed for the year. If youíre a
parent, here are several tax benefits you should look for when you file your
federal tax return:
In most cases, you can claim your child as a dependent. You can deduct $3,950
for each dependent you are entitled to claim. You must reduce this amount if
your income is above certain limits. See
Publication 501, Exemptions, Standard Deduction and Filing Information.
Child Tax Credit.
You may be able to claim the Child Tax Credit for each of your qualifying
children under the age of 17. The maximum credit is $1,000 per child. If you
get less than the full amount of the credit, you may be eligible for the
Additional Child Tax Credit. See
Schedule 8812 and
both titled Child Tax Credit.
Child and Dependent Care Credit.
You may be able to claim this credit if you paid for the care of one or more
qualifying persons. Dependent children under age 13 are among those who
qualify. You must have paid for care so that you could work or could look for
Publication 503, Child and Dependent Care Expenses, for more on this credit.
Earned Income Tax Credit.
You may qualify for EITC if you worked but earned less than $52,427 last year.
You can get up to $6,143 in EITC. You may qualify with or without children. See
Publication 596, Earned Income Tax Credit, to learn more.
. You may be able to claim a tax credit for certain costs you paid to adopt a
child. For details see
Form 8839, Qualified Adoption Expenses.
Education tax credits.
An education credit can help you with the cost of higher education. There are
two credits that are available. The American Opportunity Tax Credit and the
Lifetime Learning Credit may reduce the amount of tax you owe. If the credit
reduces your tax to less than zero, you may get a refund. Even if you donít owe
any taxes, you still may qualify. You must complete
Form 8863, Education
Credits, and file a return to claim these credits. Use the Interactive Tax
Assistant tool on IRS.gov to see if you can claim them. Visit the IRSís
Education Credits Web page to learn more. Also see
Publication 970, Tax
Benefits for Education, for more on this topic.
Student loan interest.
You may be able to deduct interest you paid on a qualified student loan. You
can claim this benefit even if you do not itemize your deductions. See
Self-employed health insurance deduction.
If you were self-employed and paid for health insurance, you may be able to
deduct premiums you paid during the year. This may include the cost to cover
your children under age 27, even if they are not your dependent. See
Publication 535, Business Expenses, for details.
IRS YouTube Videos:
See If You Qualify for the Earned Income Tax Credit