INTERNET TAX CONNECTION
Six Ways New Parents Can Save on Taxes IF YOU HAD A BABY RECENTLY, THEY ARE BRINGING YOU MORE THAN JOY THIS YEAR. THEY ALSO BRING IN BUNDLES OF TAX SAVINGS FOR YOU DURING TAX SEASON.
1.) DEPENDENT EXEMPTION This exemption reduces your taxable income. This year you can expect $4,000 per child.
2.) EARNED INCOME TAX CREDIT Depending on your income, filing status, and family size, you may be able to get this refundable tax credit. If your credit amount exceeds your tax liability, you may be able to get some money back in the form of a refund.
3.) CHILD AND DEPENDENT CARE CREDIT If you have to pay for child care for your dependents you could claim up to 35% of the expenses with a cap of $3,000 for one qualifying dependent.
4.) CHILD TAX CREDIT You may be eligible for the child tax credit, which reduces your taxes dollar for dollar. It can be used for children under 17 and is worth $1,000.
5.)MEDICAL EXPENSES If medical expenses are more than 10% of your AGI, you may be able to deduct them. You have to keep all of your receipts because checkups add up quickly.
6.) START A COLLEGE FUND College may seem like years away, but starting a college fund as early as possible is a smart move. Opening up a 529 is quick and easy. Many states offer tax breaks for 529 contributions.
www.internettaxconnection.com/six-ways-new-parents-can-save-on-taxes