If parenthood could be summed up in one word, that word would be responsibility. Being a parent means not only are you responsible for yourself, but also another human being.
With new responsibilities comes new pressures. However, RapidTax wants to help take that pressure off your shoulders, at least when it comes to the responsibility of filing your taxes. That’s why we have created this list of top tax tips for parents filing taxes. These tips will not only save you money, but also save you time when filing your taxes.
How to Increase your Tax Refund when Claiming Your Child:
The credits below apply to you if you are claiming a child on your taxes. Be sure to read through the entire list or you might mix some extra tax dollars!
1. Each child is a dependent exemption: When filing, each child you claim is counted as a tax exemption of $3900.
2. Claim the Child Tax Credit: For each child you claim (under the age of 17), there is a non-refundable tax credit of $1000. This credit is phased out if your modified adjusted gross income is over $75,000 if your single or over $110,000 if married filing jointly.
3. Child Care is a Tax Credit: The Child and Dependent Care Credit allows filers to claim up to $1,050 of child care related expenses paid for one qualifying dependent, as long as the child is under 13 years old. Did you spend money on child care expenses for two or more children? You can claim up to $2,100 for two or more dependents with this credit.
4. You might Qualify for the Earned Income Tax Credit: If your family’s modified adjusted gross income is under $52,000 you may qualify to claim the earned income tax credit. The maximum credit for family’s with three or more children is $6,044… meaning, this is a pretty big money saving tax credit!
5. Adoption Credit: If you adopted a child, you might be able to deduct up to $12,970 of your qualifying adoption fees. The costs you can include in this credit include adoption, attorney, court fees and travel expenses.
When Claiming Your Child(ren), Don’t Forget…..
1. To include your new baby: If you’re child was born before the end of 2013, you can claim them on your 2013 taxes this tax season. However, if your child was born in 2014, you won’t be able to claim them on your 2013 taxes.
2. Enter Your Child’s Social Security Number Correctly: In order to claim your child, you’ll need his/her social security number. If it isn’t correct, your tax return will be rejected. (Which just complicates everything. You’re a busy parent- you don’t have time for that!)
If you’re a parent, you already have enough to worry about. Filing your taxes and claiming a child on taxes shouldn’t be one of them.
Filing your taxes on RapidTax is made easy for a parent of five or a parent of one. Why? Because the RapidTax application is designed to look for possible tax credits you might have missed. That means two things; a larger tax refund and tax filing made easy.
File today on RapidTax and see how large your refund will be. Once you receive your tax refund, you can pay some bills, plan a family vacation or maybe put it towards your child’s education. Whatever your case may be, the sooner you file, the sooner you’ll get your tax refund!
4/11/2014 Photo via opensource.com on Flickr
