[ad_1]
Does the thought of doing your taxes on top of caring for your kids make your head spin?
Take a deep breath: We found nine tax breaks for parents.
Whether your children are swaddled newborns or seeking college degrees or whether you’re single, married with kids or adopted this year, you’re eligible to get some money back on tax day.
9 Benefits and Tax Credits for Parents
Here are the top tax credits and deductions for parents to keep in mind.
1. Out-of-Pocket Medical Expenses Related to Pregnancy
If you had a baby last year, paid out of pocket for medical expenses during your pregnancy and were never reimbursed, you’ll be able to itemize those amounts as deductions.
As of 2021, this tax code requires the expenses exceed 7.5% of your adjusted gross income. That might seem unreachable, but since you’ll be billed item by item for prenatal care and childbirth, it can start to add up.
2. Child Tax Credit
As soon as your child is born, you’re eligible for the Child Tax Creditwhich pays up to $3,600 for every child under the age of 17, depending on your income.
This might seem obvious, but it’s important to note: Even if your child is born on Dec. 31, you can still claim them for that year.
The credit is between $2,000 to $3,000 per child for children between the age of six and 17, and from $2,000 to $3,600 for children under the age of six. All working families will get the full credit if they make up to $150,000 per couple or $112,500 for a single-parent family.
3. Adoption Tax Credit
The adoption process is notorious for being lengthy and expensive.
The Adoption Tax Credit is worth up to $14,440 to help you alleviate that financial strain. This credit covers adoption fees, court costs and attorney fees, travel expenses and related expenses.
4. Earned Income Tax Credit
If you earned income last year but didn’t exceed certain thresholds, you may qualify for the Earned Income Tax Creditwhich can significantly reduce your tax…
[ad_2]
Source link
