It sure costs a ton to raise kids these days. That’s why I want to make sure parents take advantage of the tax credits they might be able to claim.
Child tax credit
Get up to $1,000 in tax credits for children under 17 who lived with you more than half the year, and you claim as a dependent. Phaseouts, or reductions of the credit, start at $75,000 for single, $110,000 for married filing jointly, and $55,000 for married filing separately.
Child and dependent care credit
Get tax credits for a percentage of a child or dependent care expenses paid for you and your spouse to work or look for work. Children must be under 13, and you must have earned income (wages, business income, self-employment income) to claim the credit. Examples of these kinds of expenses are daycare, before or after school care, and day camp.