6 Tax Breaks for Parents
Dear <<First Name>>,
The IRS offers child tax credits to help parents and guardians offset some of the costs of raising a family. If you have a dependent who isn’t your direct child, you may also be eligible to claim a credit.
Parents may seek tax breaks on everything from child care to educational costs and even supplies, in some cases. Here are 6 ways you can take advantage of tax benefits as a parent:
The Child Tax Credit is a significant tax credit for those with qualified dependent children under age 17 (more on qualifications in a bit). With tax reform, the Child Tax Credit was increased to $2,000 per qualifying child and will be refundable up to $1,400, subject to income phaseouts.
Summer Camps and Child Care
Research shows one in three families now spend 20% or more of their annual household income on child care. If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children or dependents.
Qualified Tuition Plans, or 529 Plans
These plans offer yet another way to save on taxes while providing for your child’s education. A 529 plan is not a deduction or a....