As a parent you may be eligible for additional tax credits. The IRS provides credits that are geared towards parents, these credit can help offset the cost or raising children and can help you save money at tax time.
The credits below can be claimed on children who are considered dependents including children born in the current tax year. These credits are made available to all parents who qualify.
Child Tax Credit – If you have children under the age of 17 years old and are considered a dependent you may be able to claim them for the Child Tax Credit. You will receive a credit of $1,000 per qualifying child. If you receive a lower credit amount you may qualify for the Additional Child Tax Credit.
Child and Dependent Care Credit – If you pay a 3rd party for care of a qualifying person you may be eligible for this credit. This Credit is available to those that have any child care costs for children under the age of 13 years, which you paid while you were looking for work or working.
Earned Income Credit – If you earned less than $52,427 in 2014 then you may qualify for this credit. This can be helpful to working parents, as this can earn you up to $6,143 for families with three eligible children.
Adoption Credit – If you have adopted a child during the tax year you may be able to claim some of the costs associated with the adoption process.
Higher Learning Credits – You may be eligible to claim two different credits that can help offset the cost of higher education. If you have paid for college expenses for either a dependent or yourself you may be eligible for the American Opportunity Credit, or Lifetime Learning Credit. The American Opportunity Credit is refundable up to $1,000 and both may allow you to lower your tax liability.
Student Loan Interest – If you paid qualified student loans you maybe be able to claim interest payments made on those loans without having to itemize all of your deductions.
Self-Employed Health Insurance – If you are self-employed and paid for your own health insurance, you may be able to deduct the amount of premiums paid for any child under the Affordable Care Act. Children under the age of 27 are applicable even if they are not claimed as a dependant.