Child Tax Benefits

by Shanika Chapman

While child tax deductions and credits don't cover everything, they can help offset the costs of raising a family by reducing your taxable income. Your child's age and your income determine eligibility for federal tax benefits. Your child must also reside with you for the majority of the year if you intend to claim him.

Exemption

You can claim an exemption for each of your qualifying children. At the time of publication, this results in a deduction of $3,500 per child.

Tuition and Fees Deduction

If your income is less than $160,000, if married and filing jointly, or $80,000 if single, at the time of publication, you can deduct up to $4,000 for your child's college tuition and fees.

Student Loan Interest Deduction

If your income is less than $140,000 if married and filing jointly or $70,000 if single, at the time of publication, you can deduct up to $2,500 for your child's student loan interest.

Child or Dependant Care Tax Credit

If your child required care while you were working or looking for work, you may be eligible to recoup money spent on child care through the Child or Dependent Care tax credit.

Adoption Credit

If you adopted a child, you may be able to recoup some of the money associated with the adoption, such as court costs and adoption fees through the Adoption Credit.

Other Benefits

You could be eligible to claim the Child Tax Credit for children younger than 17 years old, the Earned Income Credit, and either the Hope Credit or the Lifetime Learning Credit if your child is attending college.

About the Author

Shanika Chapman has been writing business-related articles since 2009. She holds a Bachelor of Science in social science from the University of Maryland University College. Chapman also served for four years in the Air Force and has run a successful business since 2008.

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