1 month ago
By KATHERINE ROTH
Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year]
NEW YORK (AP) — There are a fewer taxation tips parents of children 17 and nether should support successful mind earlier filing, taxation pros say. Here’s what to know:
Child taxation credit
The kid taxation in installments has reverted little for 2023 than successful erstwhile years, erstwhile it was expanded owed to COVID. This intends taxpayers pinch 1 aliases 2 children whitethorn spot a little in installments for their children nether property 17 than successful 2021. It’s still up to $2,000 per child, though, and it tin beryllium claimed alongside nan modular conclusion and reduces your full taxation bill, said Eric Bronnenkant, head of taxation astatine Betterment, a financial advisory institution that provides integer investment, status and rate guidance services.
Child and limited attraction in installments and deductions
The kid and limited attraction in installments is disposable for expenses paid for a qualifying kid for time care. It tin besides beryllium utilized for dependents who are not capable to attraction for themselves, if nan requirements are met.
In addition, up to $3,000 per kid (up to $6,000 total) tin beryllium deducted successful kid attraction costs. If you person a limited attraction programme done your employer, you are besides allowed to deduct up to $5,000 twelvemonth successful pre-tax dollars, says Mark Jaeger, vice president of taxation operations astatine TaxAct, a institution based successful Cedar Rapids, Iowa, that provides income taxation mentation package to consumers and taxation professionals.
“But you can’t double dip,” Jaeger says. “If you return $5,000 successful pre-tax dollars and you person 2 children successful kid attraction who suffice for kid attraction deductions, you tin only return $1,000 successful remaining limited attraction expenditures earlier reaching that $6,000 maximum.”
Pending legislation
Congress has been looking astatine expanding nan kid taxation credit. Depending connected your income bracket and nan number of kids you have, this alteration could supply a boost, says Kathy Pickering, main taxation serviceman astatine H&R Block.
“Many taxpayers person asked if they should hold until nan authorities is passed earlier filing their taxation return. Because nan authorities is not final, and we’re unsure if aliases erstwhile it will get done, it’s important to cognize that if passed, nan IRS will cipher immoderate adjustments owed and automatically nonstop payments. There’s nary request for filers to wait,” she says.
Make judge your kid has a Social Security number
This whitethorn look obvious, but successful bid to declare your kid arsenic a dependent, you will request to see your child’s Social Security number, truthful make judge each of your children person one, says Tom O’Saben, head of taxation contented and authorities relations astatine nan National Association of Tax Professionals.
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Find much of AP’s taxation play sum here: https://apnews.com/hub/personal-finance
