Dependents The Tax Benefits They Bring
Dependency Exemption : Child Tax Credit Each child and dependent can bring you an exemption deduction of $4050. This means that the income that is subject to federal tax is reduced. If you are in the 15% bracket this could save you $607.50 and those in the 25% bracket could save $1012.
The child tax credit is better than the deductions because your taxes are reduced dollar for dollar. This specific credit is an additional $1000 credit that is for children under 17. Married couples qualify if they don’t make more than $110000 and single parents qualify if they don’t make more than $75000.
CHILD AND DEPENDENT CARE CREDIT Uncle Sam understands that child care is expensive. Therefore, working parents or parents actively pursuing employment for dependents under 13 can claim the Child and Dependent Care Credit.
DOLLAR FOR DOLLAR REDUCTION This credit is another dollar for dollar reduction of your taxes for up to 35% of your expenses. This equals $3000 for one child or $6000 for two or more children. Depending on your income 20% - 35% of your childcare expenses (based on your income) can be reduced.
EARNED INCOME TAX CREDIT
IF YOU FILE WITH TURBOTAX
The Earned Income Tax Credit is
The next time your kids are
available to W-2 employees and
working your nerves remember
self-employed people who make
that they save your butt big time
less than a certain amount. How
during tax season. If you file with
much you get depends on the
TurboTax, they will make sure that
number of children you have.
you get all of the tax credits you deserve when you file your tax return.
TAX BENEFITS THEY Information Source: BRING http://easydiyonline.webs.com/dependents-tax-benefits