Take advantage of these 7 top tax deductions to put more money back in your family's pockets and make tax time less miserable!
The end of every year brings holiday parties, school performances, and last-minute shopping. But it also signals the beginning of that dreaded time –tax time. And for families on a tight budget, making sure you get every possible tax deduction is key to not having to write a big check come April. For those who qualify, these 7 tax deductions and credits will save you big time and put more money back in your pocket!
1. Child Tax Credit
The Child Tax Credit is one of three tax savings opportunities specifically geared towards children, and it can be a big one. In 2019, the tax credit is worth up to $2,000 per qualifying child (we’ll get into what that means in a bit) or $500 per qualifying dependent.
2. The Child and Dependent Care Tax Credit
This tax credit is intended to lessen the burden of child care costs. This tax credit will save you 20 to 35% of up to $3,000 in child care and similar costs (or up to $6,000 for two or more dependents), provided that they are necessary so you can work. Qualified expenses can include both physical care (like daycare) but also household expenses, such as cooking and cleaning, in some cases.
3. 529 Savings Plan
No parent wants to think about the cost of college, but the hard truth is, the more you prepare, the better off you (and your children) will be. One of the most popular ways to save for college is through a 529 Savings Plan, which is offered by each state that is exempt from federal taxes.
