Uncategorized Celebrate Labor Day with 6 Ways to Save on Taxes for New Parents Leer el artículo Abrir el cajón compartido Escrito por Elle Martinez Publicado Jun 5, 2019 2 minutos de lectura Happy Labor Day weekend! If you are in labor this weekend or were in labor anytime this year you may find that babies not only bring you joy, but they can also bring you bundles of savings come tax time. New Parent’s Guide to Taxes When we became parents for the first time, we were pleasantly surprised at the tax benefits we were able to claim. When our second child arrived we were able to look forward to even bigger savings. If you’re expecting your little one very soon, here are some tax deductions and credits you’ll want to keep tabs on. Dependent Exemption: One big financial benefit of your little one is that you can claim a dependent exemption. What’s wonderful about this is the exemption reduces your taxable income. The exemption amount for 2017 is $4,050 per child when you file your taxes, the same as for 2016. Earned Income Tax Credit: Depending on your family’s income, size, and filing status, you may be able to take advantage of this refundable tax credit (meaning you may be able to get some money back even if it exceeds your tax liability). Working families may find this credit can be worth over $3,000 for one qualifying child. Child and Dependent Care Credit: If you’re going back to work or school and will be paying for child care for your dependents, you may use this credit to claim up to 35% of $3,000 in childcare expenses for one qualifying dependent. Child Tax Credit: You may also be eligible for a child tax credit, which is even better than a tax deduction, since it reduces your taxes dollar for dollar. It’s an additional $1,000 credit you may be able to claim for children under 17. Medical Expenses: If your medical expenses are more than 10% of your adjusted gross income, you may be able to deduct them. Keep all receipts and don’t forget you can deduct you child’s medical expenses (all those check-ups can add up quickly). Start that College Fund Even though you have years and years before your baby is ready for college, setting aside money now can be a smart move for you and your child. Opening up a 529 to pay for the college expenses is usually quick and easy. You may want to check with your state as some of them offer tax breaks for 529 contributions. I hope these tips help out with your family’s finances. If you do get a tax refund, you can make it go further by setting aside some of it for paying down debt, or saving it. How many of you had your bundle of joy this year? What have been some of your favorite moments so far? How many are expecting one soon? Publicación anterior Can I Write Off My Grandparent as a Dependent? Siguente publicación Are You a PTA Parent? That Volunteering May Just Pay… Escrito por Elle Martinez Elle helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second. Más de Elle Martinez Visita el sitio web de Elle Martinez. Síguenos en Facebook. Síguenos en Twitter. Los comentarios están cerrados. Buscar artículos relacionados Planificación de Impuestos ¿Qué es una cuenta HSA? Planificación de Impuestos 5 maneras de aumentar tu reembolso de impuestos del añ… Planificación de Impuestos ¿Debería enmendar mi declaración de impuestos por un… Vida Cómo solicitar una extensión: Guía paso a paso Ingreso Instrucciones para el Anexo (K-1): Cómo presentar en 1… Planificación de Impuestos ¡Aún puedes presentar tus impuestos con TurboTax! Trabajo Cómo presentar los impuestos de pequeñas empresas Vida ¿Qué es una exención personal? ¿Deberías usarla? Ingreso Edad para hacer retiros de una cuenta IRA Vida Pago de impuestos en exceso: todo lo que debes saber