With tax day around the corner, the Internal Revenue Service has offered tips to help parents qualify for certain tax credits and deductions. If you are a parent, here are eight benefits to keep an eye on when filing taxes before the April 15 deadline.
Dependents: In most cases, you can claim a child as a dependent even if your child was born in 2012. For information: IRS Publication 501, Exemptions, Standard Deduction and Filing Information.
Child Tax Credit: You may be able to claim the Child Tax Credit for each of your children that younger than 17 at the end of 2012. If you do not benefit from the full credit, you may be eligible for the Additional Child Tax Credit. For information: Read instructions for Schedule 8812, Child Tax Credit, and Publication 972, Child Tax Credit.
Child and Dependent Care Credit: You may be able to claim this credit if you paid someone to take care of your children younger than 13, so that you could work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.
Earned Income Tax Credit: If you worked and earned less than $50,270 last year, you may qualify for the EITC. If you have children, you may get up to $5,891 extra back when you file a return and claim it. Use the EITC Assistant at www.IRS.gov to find out if you qualify and see Publication 596, Earned Income Tax Credit.
Adoption Credit: You may be able to take a tax credit for some expenses you incurred to adopt a child. For information: IRS Form 8839, Qualified Adoption Expenses.
Higher education credits: If you paid higher education costs for yourself or another student who is an immediate family member, you may qualify for either the American Opportunity Credit or the Lifetime Learning Credit. Both credits may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000. For information: IRS Publication 970, Tax Benefits for Education.
Student loan interest: You may be able to deduct interest you paid on a qualified student loan, even if you do not itemize your deductions. For information: IRS Publication 970, Tax Benefits for Education.
Self-employed health insurance deduction: If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. It applies to children younger than 27 at the end of the year, even if they’re not your dependent. For information: IRS.gov/aca about the Affordable Care Act.
At a glance
- All informational forms are available at www.IRS.gov or by calling 800-829-3676.