You should not forget your kids if you want to get a big tax refund. Most parents grumble a lot about the money they are spending from diapers to everything on their kids.
However, when April 15th gets closer most of them usually pack lunch boxes with smiles on their faces. Many people know that having kids helps with their tax breaks. Below are answers to questions which many parents have regarding their tax situation.
What Type of Tax Breaks Applies to Children?
The 2018 tax refund includes an increased child tax credit and also a new $500 non-refundable credit for other dependants — this is excellent news for a lot of families including high-income families.
Taxpayers who are qualified can claim up to $2000 instead of $1000 for children who are below the age of 17. According to your tax return, the child must be claimed as a dependent, and also he or she must have a social security number.
Is it Possible to Get Relief from Day-Care Bills?
Yes, it is possible for you to get relief from day-care bills if you carefully read the rules of the CDCC. However, you should remember that your dependent child must be below 13 years when the care is being provided. The overall amount of the expenses you should use to calculate the credit should be $3,000 for one qualifying child or $6,000 for two or more qualifying individuals.