Claiming Your Child as a Dependent
As a parent, you can save tax dollars by claiming children as your dependents and by taking advantage of tax credits for families.
Single parents and married parents both are eligible for big tax breaks such as the dependent care credit. Here are more tax tips for parents:
If you have adopted a child, a tax credit can be taken for certain expenses that go along with the adoption process. Those fees include adoption fees, court costs, the cost of hiring an attorney, travel expense including food and housing, and any other expense that relates directly to the process.
Child and Dependent Care Credit
IF you have a child under the age of 13 and pay somebody to watch him/her while you work or search for a job, you may qualify for the Child and Dependent Care Credit. This tax benefit extends also to situations in which care is provided for adults who are incapable of self-care.
Child Tax Credit
In some cases, you can claim a Child Tax Credit for each kid that you have under the age of 17. Double check your eligibility with the IRS or your tax professional. This credit reduces your tax bill by up to $1,000 per child. Income limits apply to this credit. For example the credit amount is reduced for married taxpayers filing jointly who earned $110,000.