Parents Look to Maximize Tax Benefits for Children as Tax Season Begins

As tax season kicks off across the US, parents are looking for ways to claim benefits or reduce their tax bills thanks to their children. According to a report by MARCA on January 25, 2023, the most common of these benefits is the Child Tax Credit, which is worth $2,000 this year. However, low- to moderate-income earners may benefit more from the Earned Income Tax Credit, which can lower taxes or even result in a refund if it reduces taxes to below zero. For example, parents who file taxes with one child and earn less than $43,492 can claim a $3,733 tax credit.

Families who adopted a child in the past year can also benefit from the Adoption Tax Credit, which allows them to claim up to $14,890 in eligible adoption expenses for each child. These expenses may include legal fees, court costs, travel expenses, and other adoption-related expenses.

Taxpayers who are unmarried and supporting a qualifying individual may be able to file as Head of Household. This designation can also result in lower taxes and greater tax benefits.

As tax season progresses, it’s important for taxpayers to be aware of all the deductions and credits available to them. Seeking the advice of a tax professional or using tax preparation software may help taxpayers make the most of the tax benefits available to them.