Kid-centric Tax Breaks Every Parent Should Know

From MSN Money:

Tax breaks for parents with kids of any age

* Dependent exemption: As soon as your little bundle arrives, he or she earns you a break on your taxes. For 2013 the dependent exemption reduces your taxable income by $3,900 for each dependent child under the age of 19—or until the age of 24, in the case of a full-time student. For divorced parents, the exemption typically goes to the parent who has custody of the child most of the year.

* Child tax credit: The child tax credit shaves up to $1,000 off your tax bill for every kid under the age of 17. There are a handful of requirements for eligibility, such as the fact that the child must be claimed as your dependent and live with you for at least half of the year. The credit phases out for married couples filing jointly with incomes above $110,000, for a single head of household with an income of $75,000 or for a married person filing separately with an income of $55,000.

* Medical mileage deduction: Toting your kid to all of those doctors appointments could earn you a tax break. Parents can often deduct travel expenses associated with medical visits, but there are restrictions. “The mileage used when you take your child for their normal doctor checkup is not deductible,” Schneider says. “But if [the trip is because] they are sick, it is.” You can deduct the cost of gas, parking and tolls related to the visits using the 2013 standard medical mileage rate of 24 cents per mile.

For the full article including additional tips please visit:–11-kid-centric-tax-breaks-every-parent-should-know

Davis & Hodgdon Associates has been assisting individuals and businesses in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].

Similar Posts