With the April 15th deadline just around the corner, working parents are scrambling to get their income tax preparation in Kissimmee, Orlando and Hunters Creek FL in order. Think the kids will cost you more? Think again! Children can actually help you qualify for tax benefits. Here is how –
Parents who have incurred certain expenses in the process of adopting a child may qualify for tax credit. They will need the IRS issued Qualification Adoption Expenses Form (form 8839) to apply.
Higher Education Credits
Parents can apply for the Lifetime Learning Credit or American Opportunity Credit if they paid for higher education costs either for themselves or for an immediate member of their family. Both of these credit types can reduce a substantial amount of tax that you owe to the IRS.
Self Employed Parents
Parents who are self employed and paid for health insurance may be able to deduct the premiums they paid to cover their children. Children under 27 years of age apply no matter whether they are dependant or not.
A child can be claimed as a dependant by parents even if he/she was born in 2012. Make sure whether this applies to you as well before you finalize any income tax preparation documents.
Earned Income Tax Credit
You may qualify for an EITC (Earned Income Tax Credit) if you were employed but earned less than $50,270 last year. For instance, a parent who falls in this category and has children who qualify may be entitled to as much as $5,891 when it comes time to file tax returns and claim it.
Child Tax Credit
It pays to consider your options when engaging in income tax preparation services in Kissimmee, Orlando and Hunters Creek FL. Make sure that you also take the Child Tax Credit into account if you happen to be a parent. For example, parents can claim a child Tax Credit for each of their children who were younger than 17 at the end of 2012.
Student Loan Interest
Parents can also apply for the deduction of the interest they paid on qualified student loans. Make sure that you keep any student loans in mind before hiring a service for your income tax preparation.
Child and Dependant Care Credit
Even paying for babysitting services can result in reduced taxes. Parents are eligible to apply for Child and Dependant Care Credit if they paid someone to care for their child to look for employment. However the child or children in question must be below 13 years of age.
Parents often worry about how much babies cost. Unfortunately not all of them are aware of the tax benefits that they will be eligible to apply for once they have a little bundle of joy. Fortunately the IRS has made it easy for parents to apply for such tax benefits with official forms. If you happen to be a parent yourself, it will be worth your while to check up on any possible deductions before finalizing any income tax preparation documents.
For more information about tax services in Kissimmee, Orlando and Hunters Creek, please contact us at 407-344-1012. God bless.