Taxsmith – Tax Benefits for Parents!

Taxsmith – Taxable and Nontaxable Income
February 17, 2013
Taxsmith, LLC – Can You Claim the Child Tax Credit?
February 17, 2013

Taxsmith – Tax Benefits for Parents!

Are you a parent and think that your children will never “pay” you back. Well, they probably will never pay you back but they may add some money to your pocket when filing your tax return and Taxsmith has the tips for you!

  • Children can be claimed as dependents if they were born in 2012. If you are divorced or filing separate Taxsmith urges you to make sure that you can claim your children based on the Qualifying Child test issued by the IRS.
  • Was your child(ren) under 17 at the end of 2012? If so, you may be able to claim the Child Tax Credit for each child. If you do not benefit from the full amount of the credit, you may be eligible for the Additional Child Tax Credit.
  • Did you work and had to pay Child and Dependent Care? If so, you may be able to claim Child and Dependent Care Credit for your child(ren) as long as they are under 13 and the child care was needed so that you could work or actively look for work.
  • If you made less than $50,270 you may be able to claim the Earned Income Tax Credit. If you have qualifying children you may get up to $5,891 extra back when you file and claim it. There are additional qualifications that need to be met before the IRS will allow the EITC to be claimed.
  • Did you adopt a child? If so then you may be eligible for an adoption credit.
  • If you paid higher education costs for yourself or another student who is an immediate family member, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. Both credits may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000.
  • You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize your deductions.
  • If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. It applies to children under age 27 at the end of the year, even if not your dependent.

If you have any questions after reviewing the information please contact Taxsmith at 888.741.0272 FREE or email us at info@taxsmith.com.