Raising children is one the most challenging jobs a human can have. It is also the most rewarding. There are many wonderful things about having kids, one of them being that they can be a great tax deduction! However, as they get older, many child-related deductions fall off and create an unexpected tax bill. Worse yet, it happens all at once.

For Example

As an example, one of the largest tax deductions your children can provide is via the child tax credit. If they are under age 17 on December 31st and meet several other qualifications, you could get up to $2,000 for that child on the following year's tax return. But you'll lose this deduction the year they turn 17. 

If their 17th birthday occurs in 2022, you can't claim them for the child tax credit when you file your 2022 tax return in 2023, resulting in $2,000 more in taxes you'll need to pay.

Tax Tip

While there isn't anything that can be done about your child getting older and thus losing out on this great tax credit, it does help when you know to anticipate this change.

Leaving your taxes in the hands of any ole tax preparer isn't enough. At Gold Standard, we help you to anticipate changes like these and to strategize ways to offset them.

Want to see if there are big changes coming up for you in the next tax year? Click here to schedule an appointment with one of Gold Standard's seasoned tax accountants.

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