Being a parent is definitely a hard job as well as an added expense to your income. When children come, they not only bring blessings but a lot of expense on their hands as well. However, your children can also be a great way for you to exempt you from paying a lot of taxes.
Parents will be eligible for getting exemption for instance credit and deductions. If you are a parent, then you will find some interesting benefits below in this article which are all related to the tax benefits you will get if you have a child.
In many countries, you can claim that your child is a dependent if he or she has been born anytime after the year 2012. You can claim a lot of expenses on behalf of your children and use them to meet their needs.
You can claim to get the child tax credit if your child has turned or is above the age of 17 after the year 2012. Even if you do not get the full benefit of the child tax credit, you can also opt for the additional child tax credit.
You can claim the child and dependent care credit if you go to work or do job and cannot take care of your child which is why you have hired a babysitter or a nanny to look after your kid. The amount which you have to pay to the nanny or the babysitter can be claimed from this credit.
If you do a job and earn less than 50270 dollars in a year, then you will be eligible for the earned income tax credit. If you are a parent to children, you can always claim for this credit and you will get 5891 dollars. You can call up the assistants who work in the income tax credit department to confirm if you are eligible for this credit.
If you have adopted a child, then you are eligible for claiming the adoption credit for all kinds of expenses that you are bearing to meet the needs of the adopted child. For further information and details, you can have a look at the instructions mentioned in the IRS form 8839 under the qualification adoption expenses department.
If you have a paid a very high amount of education cost for your studies or for someone who is an immediate relative of yours, you can qualify for the American opportunity credit or else the lifetime learning credit. These acts will definitely reduce a big amount of tax that you have to pay. Even if the American opportunity tax credit is higher than the amount of tax you have to pay, you will even get a refund of 1000 dollars.
You can claim the student loan interest if you have paid the amount on any student loan without even itemizing your deductions. You can also look at the IRS publication 970 which comes under the tax benefits for education.
If you are self-employed and do a job or work somewhere, you might have paid all the health insurances so for that you can also cut down the premiums which you have paid to cover the expenses for your child. This is eligible for those who are under the age of 27 even if they are not dependent on you.
Wrapping up
It is true that many people think that if they will have children, it will add up in their expenses. But this is not true specially in the western world where parents are provided with a lot of benefits in order to raise up their children specially if they have the citizenship.
For instance, in countries like the UK, Canada and the united states of America, special benefits are provided along with a hefty amount to raise up the child and meet his needs. A paid maternity leave is also given to the mother if she is a working woman and the same applies to a man.
