Raising a family comes with a multitude of costs, costs which require an adequate and stable income. As your income goes up, so too do your taxes. But taking advantage of some tax deductions can help. Here are a few scenarios to consider:
- Child Tax Credit – If you are a parent or legal guardian of a child 17 years of age or younger at the end of any given tax year, you may claim the child tax credit.
- Earned Income Tax Credit (EITC) – This credit is a benefit that more eligible families than not fail to claim. Don’t let this be you!
- Child and Dependent Care – If you are working on continuing with your studies, it can push your resources to the limit. The Child and Dependent Care Credit can help fill the gap.
- Education Tax Credits – The cost of a quality education can also be financially demanding. There are tax credits that may help with this.
- Medical Deductions – There are various deductions one can claim for qualifying medical expenses. This can help reduce your taxes if you reach certain thresholds of medical expenses, or if you save in qualifying accounts.
Be sure to talk to your tax professional to find out which specific tax credits you may qualify for from the situations listed above.