There are many tax credits that parents can take advantage of.
Whether you want to believe it or not, tax season is only a few weeks away. At our day care in Fairfield, we know how important it is for parents to save as much as possible, and luckily, there are many tax credits that you can take advantage of to help you save! The following is a list from our child care professionals of a few tax credits that all parents need to know about:
#1. Dependent Exemptions
Exemptions reduce the amount of taxable income you have, and as a parent, you can claim a tax exemption for every person you care for who qualifies as a dependent. In most cases, your taxable gross income will be reduced by $4,000 for every exemption you file. However, these exemptions start to fade out for taxpayers who make more income, so be sure to consult your tax professional.
#2. Earned Income Tax Credit
The Earned Income Tax Credit is a credit for workers who earn low to moderate incomes. In addition to determining the number of exemptions you can take out, the number of children you have can also play a role in your eligibility for the Earned Income Tax Credit. The more children you have, the lower the income threshold is for you to qualify.
These are just a couple of the many tax credits that all parents need to know about. Would you like to learn more? If so, please stay tuned for our next blog!