5 Child Tax Credits Parents Can ClaimPublished:
If you’re a parent, you want to squeeze all the money out of your tax refund that you can. This includes adding all the child tax credits you can find. Fortunately, there is no shortage of them to be found. You should be able to find something that helps you out, including these five credits.
1. Child Tax Credit
This is one of the basic child tax credits. It covers any parent who has a child under the age of 17 for which they provide more than half of support. Also, the child must have lived with the parent for over half the year and be able to be claimed as a dependent.
2. Child and Dependent Care Credit
Alongside the child tax credit, this is one of the most used credits. This one is used when a parent wants to claim money spent on the care of the child while the parent worked or went to school. It’s good for up to $3,000 for one child and $6,000 for two children.
3. Earned Income Tax Credit
This credit can really help you out when you need extra money, especially if you have a child. The IRS allows families that have earned under a certain amount of money to claim this. The more children you have, the higher the salary cap is. For instance, if you have two kids, you must have earned less than $45,373 (married filing jointly). For three kids, it becomes $48,362.
4. Adoption Credit
Adopting a child can be ridiculously expensive. Luckily, you can claim many of these costs on your tax return. This is done by filing Form 8839, the Qualified Adoption Expenses form.
5. Student Loan Interest
Speaking of expensive, the cost of student loans keeps going up every year. If you’re making payments for your child, you’re also paying the interest that accrues. This interest can be claimed on your tax forms.