Posts Tagged ‘children’
Tuesday, March 1st, 2011
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Got kids? They may have an impact on your tax situation. Here are the top 8 things to consider if you have children.
- Dependents: In most cases, a child can be claimed as a dependent in the year they were born. Be sure to let us know if your family increased this year and we’ll take a look at whether you can claim the child as a dependent this year.
- Child Tax Credit: You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax.
- Child and Dependent Care Credit: You may be able to claim this credit if you pay someone to care for your child under age 13 so that you can work or look for work. Be sure to keep track of your child care expenses so we can claim this credit accurately.
- Earned Income Tax Credit: The EITC is a benefit for certain people who work and have earned income from wages, self-employment, or farming. EITC reduces the amount of tax you owe and may also give you a refund.
- Adoption Credit: You may be able to take a tax credit for qualifying expenses paid to adopt a child.
- Coverdell Education Savings Account: This savings account is used to pay qualified expenses at an eligible educational institution. Contributions are not deductible; however, qualified distributions generally are tax-free.
- Higher Education Credits: Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar for dollar, unlike a deduction, which reduces your taxable income.
- Student Loan Interest: You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions.
As you can see, having children can make a big impact on your tax profile. If you’re a parent, we’ll go over your situation with you to make sure you’re getting the appropriate credits and deductions. |
Tags: children
Posted in Individual, Tax | No Comments »
Tuesday, July 6th, 2010
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As another school year ends, college tuition payments are a year closer. Parents often wonder when they should start saving and how much.
College tuition and fees are costly and on the rise. But even with 4-year private schools running on average $36,000 per year, the cost is well worth it. According to the US Census Bureau, individuals with a bachelor’s degree earn more than double those with just a high school diploma.
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Tags: children, financial planning
Posted in General, Individual | No Comments »
Monday, March 8th, 2010
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Got kids? They may have an impact on your tax situation. here are the top 10 things to consider if you have children.
- Dependents: In most cases, a child can be claimed as a dependent in the year they were born.
- Child Tax Credit: You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Creidit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax.
- Child and Dependent Care Credit: You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work.
- Earned Income Tax Credit: The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.
- Adoption Credit: ;You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child.
- Children with Earned Income: If your child has income earned from working they may be required to file a tax return.
- Children with Investment Income: Under certain cirmcumstances a child’s investment income may be taxed at the parent’s tax rate.
- Coverdell Education Savings Account: This savings account is used to pay qualified educational expenses at an eligible educational institution. Contributions are not deductible, however, qualified distributions generally are tax-gree.
- Higher Education Credits: Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income.
- Student Loan Interest: You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions.
Got kids and need more information? Contact us.
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Tags: children, deductions, Tax
Posted in Individual, Tax | No Comments »
