Traverse City Tax Preparation Planner Frank Ellis discusses the tax benefits of dependents in a Do It Yourself Online article. The author explains that kids can be a plus during tax time. He then details several exemptions and tax credits that taxpayers can take advantage of.
Ellis first mentions the Dependency Exemption. This reduces the income subject to federal taxes. The actual amount reduced depends on the tax bracket one is in. A couple of these are identified in the article. The Child Tax Credit, which reduces taxes dollar for dollar, is listed next. The value of the credit and how married couples can benefit are mentioned.
Also, the author talks about the Child and Dependent Care Credit. He explains who qualifies and how much of one’s expenses can be claimed as a reduction of taxes. The percentage of expenses reduced also depends on income levels. Taxpayers with children in daycare, private kindergarten, and nursery school and other situations qualify.
A few points about the Earned Income Tax Credit are explained and listed. Both W-2 employees and self-employed individuals qualify for this. Depending on the tax situation, the threshold varies. Those who file for this credit must make less than a specific amount for that tax year.
After listing the few items that can help parents, the author provides a link to TurboTax software, so they can identify tax credits that apply to them by answering questions. He also reveals a satisfaction guarantee and the ability to get the largest refund possible. Software options and means to file state and federal tax returns are mentioned too.
To learn more about the tax benefits of having children and dependents, go to http://easydiyonline.webs.com/dependents-tax-benefits.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Do it Yourself Online
945 East 8th Street Suite A
Traverse City, Michigan 49686