A tax preparation planner and author out of Traverse City, Michigan, Frank Ellis reveals six different ways in which new parents can save on their taxes. Just published on Internettaxconnection.com, it explains how those who’ve had a baby recently can see tax savings. Several tax deductions and credits to take advantage of for the upcoming tax season are listed and explained. |
Ellis lists the dependent exemption, which reduces parent’s taxable income by as much as $4,000 per child. The Earned Income Tax Credit is another one. The refundable tax credit varies depending on several factors, including filing status, income, and family size. Refunds are possible if the credit amount exceeds one’s tax liability.
Additional options include the child and dependent care credit. It is for those who pay for child care for their dependents. Up to 35% of the expenses can be claimed. The author also mentions the child tax credit , for use by those with children under 17, and medical expenses that exceed 10% of the taxpayer’s AGI. Ellis also suggest saving all medical receipts to keep track of appointments and checkups.
The author also touches on starting a college fund. Starting a college fund early not only benefits a child’s education later on. Many states offer tax breaks for people who open up a 529 fund.
In closing, Ellis suggests using potential refunds to pay down debt or for savings. He also mentions TurboTax and filing taxes as soon as possible. Several benefits of the software are mentioned while there’s also a link to the free tax refund calculator for 2016 and how to import W2 information with the online filing service.
For more details on TurboTax online services and how to see tax savings as a new parent, go to http://internettaxconnection.com/six-ways-new-parents-can-save-on-taxes/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Internet Tax Connection
945 East 8th Street Suite A
Traverse City, Michigan 49686
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