Chris O'Shea
Tax season is upon us, which is not fun for anyone. But, if you’re a parent, you can at least take everything Uncle Sam is offering and make your taxes less painful. Here are some tax credits that you should know about.
Earned Income Tax Credit
If you earn $46,000* or less per year, you could qualify for the “Earned Income Tax Credit.” The credit ranges from $3,995 to $7,430, depending on how many kids you have, your income, and your filing status.
Adoption Credit
Families who adopted a child in 2023* can receive the adoption tax credit. That’s as long as you make less than $279,230 per year. The credit can be up to $15,950 per child, depending on income. If you earn below $239,230, you may get the full credit. If you earn between $239,230 and the cut-off of $279,230, you may qualify for partial credit.
American Opportunity Credit
If you have a kid attending college, you may be eligible for the “American Opportunity Tax Credit”* and receive up to $2,500 per year, per eligible student. You must earn less than $160,000 if filing jointly and $80,000 or less if filing as an individual.
Lifetime Learning Credit
Are your kids interested in higher education? Take what the government is offering via the “Lifetime Learning Tax Credit.”* This credit can cover 20 percent of higher education costs, up to $10,000. Once again, you’ll need to meet the income requirement of $80,000 per year to qualify.
Do One Thing: Make sure you research child tax credits before filing your taxes.
This information is for educational purposes only. It is not intended to be tax, financial, or legal advice. Please talk with an advisor for tax, legal, or financial guidance about your situation.
*Based on the 2023 Tax Year
Jean Chatzky
