Does the thought ofdoing your taxeson top of caring for your kids make your head spin?
Take a deep breath: We found 11 tax breaks for parents.
Drowning in Expenses?
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Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
But when you have a baby, the likelihood of having massive medical expenses goes up.
Whatevers left is what youre allowed to deduct.
The kicker is that since theTax Cuts and Jobs Actof 2017, the standard deduction has been quite high.
For a lot of households in a normal year, taking the standard deduction is more advantageous.
One thing to note about this credit is that its not refundable.
It can get your tax burden down to $0, but wont put money back in your pocket.
For that, youll need the Additional Child Tax Credit.
But your tax burden is only $600.
What of the remaining $3,400 in credit?
Well, up to $1,700 per child can be refunded with the Additional Child Tax Credit.
That means youd get the extra $3,400 back in your pocket.
This credit covers adoption fees, court costs, attorney fees, travel expenses and other related expenses.
Theincome limitsdepend on your filing status and how many children you have.
The maximum amounts of credit vary slightly each year, and will vary depending on your income.
Earning less doesnt necessarily mean you get more this tax credit operates on a bell curve.
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Head-of-Household Status
If youre single and have a child, dont overlook this crucial item: your filing status.
To be considered the head of household, you must:
8.
Under no circumstances can you get any portion of it refunded to you.
Note: You cant claim the AOTC and the LLC for the same person in a single year.
Also, the AOTC is per student, while the LLC is per family.
These accounts allow them to invest and shelter emergency savings from asset tests for programs like SSI and Medicaid.
If you contributed to your childs ABLE account this year, your state may offer you astate tax deduction.
Which Parent Should Claim the Child?
This IRS chartanswers a variety of questions you might have.
Does Your Child Work?
If your child has a job, verify they file their own tax return.
Teens who work while in school usually dont make enough money to have a liability.
Plus, its a great way to continueteaching your kids about money.
Need Some Quick Cash?
If youre looking to boost your income this month, weve got just the thing for you.
Contributor Michele Becker is a Boston-based writer who specializes in food, as well as Italian travel and history.
Brynne Conroy contributed to this report.