The apples of your eye could have a lot of tax benefits 

If you are a parent, there are certain tax benefits you should consider when filing your tax return. Watching your kids grow up is benefit enough, but these are icing on the cake (just don’t tell them there’s cake…)

ONE: Dependent

Most of the time, if you are a parent, you can claim your child as a dependent. Parents can generally deduct $4,050 for each qualified dependent child. If your income is above a certain limit, the amount might be reduced. 

TWO: Child Tax Credit 

Typically, parents can claim the Child Tax Credit for each kid under the age of 17, with the maximum credit being $1,000 per child. If you get less than the full amount of the credit, you may qualify for the Additional Child Tax Credit. Of course, Gold Standard can help you determine which one you are qualified for. 

THREE: Child and Dependent Care Credit 

Parents may be able to claim this credit if you paid for the care of one or more qualified persons. For example, dependent children under the age of 13 qualify. You must have paid for the care so that you could look for work or work. 

FOUR: Earned Income Tax Credit 

Parents who work and earned less than $53,505 last year should inquire about the EITC, because you may be able to get up to $6,269. This is not for parents only – you may qualify with or without children. 

FIVE: Adoption Credit

It is possible to claim a tax credit for certain costs associated with adopting a child. Be sure to ask us if you have any questions. 

SIX: Education Tax Credits

There are two credits available – the American Opportunity Tax Credit and the Lifetime Learning credit, which may reduce the amount of tax owed. This can help with the cost of higher education, and you may qualify even if you do not owe any tax. You would need to complete Form 8863 and file a return to claim these credits. 

SEVEN: Student Loan Interest

You may also be able to deduct the interest paid on a qualified student loan, even if you do not itemize tax deductions. Let us know if you need help determining if the interest paid on your student or educational loan is deductible. 

Bundles of joy, bundles of tax savings