The document outlines 9 different tax breaks that parents should know about including: 1) Claiming a child as a dependent allows a $4,000 deduction. Parents need to get a Social Security number for the child. 2) Filing as a head of household and updating W-4 forms can reduce tax withholdings. 3) Parents may qualify for a $1,000 child tax credit depending on income and number of children. 4) Parents may qualify for the earned income tax credit depending on income and number of children.

1. 9 TAX BREAKS
PARENTS
SHOULD KNOW
Many moms and dads may not know they could qualify for
thousands of dollars in deductions, exemptions, and credits.
Here, the top ways you can save, according to the pros:

2. Claiming your child as a
dependent allows you to deduct
$4,000 of your income. ‘First
things first, make sure you get a
Social Security number for your
new child,’ says Vanessa Borges,
Enrolled Agent, ‘You’ll need one
to claim your child as a
dependent on your tax return.’
And make sure you request one at
the hospital, because it may be a
hassle to get one later if you
don’t.
TAKING ADVANTAGE OF THE
DEPENDENCY EXEMPTION

3. Reduce your withholdings on
your paycheck by filing a new
W-4 at work. If you are
unmarried, you may also be
able to claim head of household
status if you are paying for more
than half of the cost of
providing a home for your child.
UPDATING YOUR WITHHOLDINGS
AND FILING STATUS

4. If your income is less than
$110,000 for your household or
$75,000 for a single head of
household, you get a credit of
$1,000 if your child, stepchild,
or foster child is less than 17
years old.
CLAIMING YOUR $1,000 CHILD
TAX CREDIT

5. This credit is dependent on your
income and number of children.
For example, as a family with
three children, you would qualify
for a $6,242 credit if you make
$47,747 as a single filer or
$53,267 if you file jointly with a
spouse.
CLAIMING YOUR EARNED
INCOME TAX CREDIT (EITC)

6. A tax expert points out that many
parents who purchase their own
insurance through the new
marketplace may miss out on
savings by not changing their
information to include any new
additions to their family.
Additions to your household may
help you get additional
deductions.
UPDATING YOUR INFORMATION
IN THE HEALTH-CARE
MARKETPLACE

7. Don’t lose those receipts for
prenatal visits, prescriptions, and
other medical expenses. If they
total more than 10 percent of
your income, you can deduct
what is left, and don’t forget your
child’s health-care costs can be
included in that as well.
KEEPING TRACK OF
MEDICAL EXPENSES

8. Just because you didn’t give birth
to your child doesn’t mean you
didn’t incur a lot of costs by
adding to your family. This is one
of the biggest credits worth over
$13,000, and if your child is
special needs, you automatically
qualify for the full amount.
BEARING IN MIND THE TAX
CREDIT FOR ADOPTION

9. Depending on how much you
make and spend on childcare, you
could get some reimbursement
ranging from 20–35 percent of
costs. The catch: the childcare
must be needed because the
parent or parents are unable to
care for the child due to work.
DEDUCTING CHILDCARE

10. Choosing a savings plan like a 529
state savings plan can help. One
tax professional says, ‘In all 50
states, parents can get a
deduction on their state return,
and pay no tax on the gains.
SAVING FOR COLLEGE

11. To Learn More
Visit
www.taxassistancegroup.org
or Call
(855) 549-7829
Source: Webb Battista, Morgan. “9 Tax Breaks Every Parent Needs To Know About.” Yahoo! Parenting. Yahoo! Inc., 1 November 2015. Web. 5 November 2015.
<https://www.yahoo.com/parenting/9-tax-breaks-every-parent-needs-to-know-about-160803953.html>