Parenting

Finance

Must-Know Tips for Parents to Maximize your Tax Refunds

April 14, 2023

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Each year parents miss out on $12 Billion by making mistakes on taxes. Here's what you need to know to save.

There’s A LOT of money out there for parents to collect when you have a new baby - yet each year parents miss out on $12 Billion by making mistakes on taxes or not filing at all. Follow these 4 tips to make sure you get the $$$ that’s owed to you: 

Make sure you have all your baby docs ready to go

This helps so you can add your baby to your taxes this year. This means knowing your baby’s SSN at a minimum, and sometimes having their birth certificate handy if you are going in-person to file taxes. Remember, if your child was born AT ANY POINT in 2022, not just in the first 6 months, you can put them on your taxes (assuming you were the one caring for them). 

Look out for two credits that get MUCH BIGGER when you have children

These are the Earned Income Tax Credit and the Child Tax Credit. To get both you need to have made some money from work (gig work, hourly, salary - you name it), but together these credits can mean $5,200 back in your pocket with one kid and $9,100 for two children. That’s MAJOR money. 

Don’t forget the Child and Dependent Care Credit

This tax credit is a benefit that can decrease the amount of taxes you owe if you paid for childcare (like daycare) during 2022. Your kids will need to be 13 or younger but this credit may be worth up to $1,000 for one eligible child and $2,100 for two or more children. 

If you are a student, make sure you get your education-specific credits

If you, your spouse, or your child are going to college for a degree you may be eligible for the American Opportunity Credit.  The credit is available for the first four years of your postsecondary education. X

Want tailored tax support for parents?

Check out letsgetset.co. Villie parents can use discount code VILLIE to get 25% off their filing cost when using Let’s Get Set

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