TAX AUDIT REVIEWS CHILDREN AND TAXES: HOW YOUR KIDS CAN SAVE YOU MONEY
There are numerous child tax credits available to you, and thanks to the 2017 Tax Cuts and Jobs Act they are more generous than ever. Tax audit reviews what you should know about the different credits if you claim your child as a dependent. Tax audit reviews federal and state income tax returns for taxpayers under threat of an IRS audit, helping clients come to a successful resolution at an affordable price.
While children can’t be used as tax deductions for the 2019 tax year, they can still be claimed for tax credits thanks to the 2017 Tax Cuts and Jobs Act. This new tax rule might be more beneficial to taxpayers, since the higher tax credit lowers the tax obligation dollar for dollar. If you have a child under the age of 17, your child tax credit will have doubled from $1,000 to $2,000. You can even claim this credit if you are a single parent and earn as much as $200,000 (up to $400,000 for a couple filing jointly). If your child is over the age of 17, you might be eligible for a $500 dependent credit.
If you pay for dependent childcare, you could be eligible for a dependent care credit, which is up to 35 percent of $3,000 for a single child ($1,050) or $6,000 for two or more ($2,100). Qualifying expenses include daycare, after-school programs, summer camp, nanny care, private nursery school or kindergarten.
For adoptive parents who finalized their adoptions in 2019, the IRS offers an adoption credit of up to $14,080 per adopted child. This credit is meant to offset any legal fees or travel fees amassed during the adoption process.