This year, you can reduce your tax bill MORE by using these tips than by doing the standard per-child deduction. Thanks to the Tax Cuts And Jobs Act of 2017, and recent actions taken by congress, there are a number of credits to deploy in your favor. Check these out.
Child Tax Credit
If you have a dependent child under the age of 17 prior to Jan 1, 2021, you can get a $2,000 tax credit that reduces your tax bill dollar for dollar.
Child And Dependent Care Credit
Pay for child care? Then the Child and Dependent Care Credit is a way to receive a reduction based on the money you spend annually on child care expenses – up to $1050 for one child and $2,100 for two or more children!
Earned Income Tax Credit
If you qualify as a low to moderate income household with at least one child, you may qualify for the earned income tax credit – worth up to $6,660!
Other credits worth looking into include the Recovery Rebate and Adoption Tax credits. Do some research and/or speak with a qualified tax preparer today to investigate what other money-saving opportunities are available to you.