Tax season is in full swing and we want to make sure you keep your hard earned money by taking advantage of all of the tax deductions and credits you deserve. Our guest blogger, Joan Ferreira of blogfinanzas.net, is here to share tax credits you don’t want to miss.
As parents, we work hard to provide our children with the best education, a roof to sleep under and food to eat every day. This valiant effort is not overlooked by the Internal Revenue Service (IRS). Here are three tax credits that are available when you prepare your tax return, which will help you financially support your home and children.
1. Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is one of the most helpful for families, communities, and taxpayers. If you worked and had an annual income of less than $50,162 single and $55,952 married filing jointly, you may be eligible for a credit of up to $6,557 if you have 3 or more kids.
According to the IRS, more than 22 million filers received the EITC last year, and the average EITC was about $3,191 for a family with children. However, millions of taxpayers are still missing out on this valuable tax credit, and the IRS reports that one out of five qualifying filers fails to claim the tax credit. When you use TurboTax you are asked simple questions about you and then TurboTax will help you figure out if you are eligible for this and other tax credits based on your answers.
2. Child and Dependent Care Credit
The Child and Dependent Care Credit is another credit you can claim for the expenses associated with the care of your little ones. If you have children under the age of 13 (no age limit if disabled) and you pay someone else to take care of them, you could qualify. This credit is designed to help recover up to 35% of dependent care costs of $3,000 for one child ($1,050 credit) and up to 35% of dependent care costs of $6,000 for two or more ($2,100 credit).
Similar to the Earned Income Tax Credit, one of the requirements to claim this credit is that you were working or were looking for work. The person who takes care of your children cannot be someone that you claim as a dependent (for example, an older child or your dependent parents).
3. Child Tax Credit
With the Child Tax Credit, you could receive up to $2,000 for each qualifying child in 2019. There are some requirements that you need to meet, such as the child’s age, your relationship with the child, financial support, and his or her immigration status.
The child must be under the age of 17 and a dependent on your taxes, receive more than half of his or her financial support from you and have lived with you for more than half the year. The child must also be a citizen or resident of the United States. Under tax reform, your kids need a social security number in order to claim the Child Tax Credit. The credit is gradually decreased if you have a modified adjusted gross income of more than $200,000 (or $400,000, if married and filing jointly).
These three credits will help to reduce the taxes you owe or even grant you a tax refund, which could be allocated towards your children’s education or to start your family’s financial plan. Whatever your financial goal may be, you can count on TurboTax to easily guide you through your taxes and help you get the tax credits and deductions that you deserve based on your answers.
If you have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent with an average of 15 years of experience to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent is available year-round in English and Spanish and can even review, sign, and file your tax return.