4 Overlooked Tax Breaks for New Parents
Kids can score you valuable credits and deductions on your tax return.
Got a new bundle of joy in your household? Here are opportunities to cut your tax bill as you grow your family.
1. Dependency Exemption
Claiming your son or daughter as a dependent will shelter $4,050 of your income from tax in 2016 and 2017.
2. Child Tax Credit
A new baby also delivers a $1,000 child tax credit, and this is a gift that keeps on giving every year until your dependent child turns 17.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
3. Head of Household Filing Status
If you're single, having a child may allow you to file as a head of household rather than using the single filing status. That would give you a bigger standard deduction and more advantageous tax brackets.
4. Adoption Credit
The credit will reimburse you for up to $13,460 in expenses for a 2016 adoption.
Read more about ways parents can lower their tax bills.
-
Six Ways Women Can Overcome Any Financial Obstacles Holding Them Back
To improve your financial situation, focus on empowering yourself first.
By Kiplinger Advisor Collective Published
-
Should You Enroll in Medicare if You Still Have a Job?
This question is being asked more than ever these days, so here’s what you can do when it comes to making Medicare decisions while you’re still working.
By Jae W. Oh Published
-
Six Tax Breaks That Get Better With Age
Tax Breaks Depending on your age, several tax credits, deductions, and amounts change — sometimes for the better.
By Kelley R. Taylor Last updated
-
Biden Proposes New Homebuyer Tax Credits
Tax Credits President Biden is calling for new middle-class tax breaks including a mortgage tax credit.
By Kelley R. Taylor Last updated
-
Will Florida Property Tax Be Eliminated?
Property Taxes A new proposal is raising questions about revenue generation in the Sunshine State.
By Kelley R. Taylor Published
-
States That Won't Tax Your EV
State Tax Most states impose additional fees on electric vehicles, but these states don’t penalize EV owners, and some also offer other tax incentives.
By Kelley R. Taylor Last updated
-
Tax Season is Here: Big IRS Tax Changes to Know Before You File
Tax Filing Tax deductions, tax credit amounts, and some tax laws have changed for the 2024 tax filing season.
By Kelley R. Taylor Last updated
-
Your Arizona Family Rebate is Taxable: What to Know
State Tax Thousands of Arizona families will need to report income from special child tax relief payments.
By Kelley R. Taylor Last updated
-
Families and Businesses Would Get Big Tax Breaks in Bipartisan Tax Deal
Tax Changes A new bipartisan tax deal could change the child tax credit, R&D expensing, and the employee retention tax credit.
By Kelley R. Taylor Last updated
-
Non-Refundable vs Refundable Tax Credits: What’s the Difference?
Tax Credits Refundable tax credits and non-refundable tax credits can be confusing. Here’s how they work and how each can help you when you file your tax return.
By Katelyn Washington Published