If you are like most people, your children are your pride and joy. While you can claim more than just your child as a dependent, children are usually the dependents that parents are claiming on their taxes. There are a number of different ways that claiming a dependent can help lower your taxes every year if you know to take advantage of them. Mark Dicus & Company is here to talk about some of the different ways that claiming a dependent can help you lower your taxes come tax season.
Tax Benefits of Claiming a Dependent
Following are the several tax breaks that are available to all those that claim someone as a dependent on their taxes.
– Child Tax Credit: This is the number one tax credit that you can benefit from if you have claimed a dependent. You are eligible for up to $3,600 per qualifying dependent in the year 2022. While this number can change from year to year, the bottom line is, when you claim a dependent you are going to get some money knocked off your taxes. This a refundable credit as well which means that you will get the cash if you have no tax liability. If the dependent is over 17 years old, you may still be able to receive a $500 tax credit, but it is not refundable. This means that it can lower the taxes that you owe, but you will not be cut a check if you owe no taxes.
– Child & Dependent Care Credit: If childcare is required for a dependent while you are looking for a job or working, you can possibly claim up to 50% of the funds used for childcare.
– Earned Income Tax Credit: If you fall into a low or moderate income bracket, you can qualify for the earned income tax credit. The amount of credit that you get with this tax credit will depend on what your income looks like. It will also depend on the number of dependents that you claim as well.
– Adoption Tax Credit: For those that have adopted a child in the last tax year, they can claim up to $14,440 per child that was adopted.
– Education Tax Credits: If you have a child or dependent that is enrolled in college, you may be eligible for special tax credits. The American Opportunity Tax Credit and the Lifetime Learning Credit are the most popular ones.
– Health Insurance Premium Deduction: When you are a business owner that pays for your own health insurance, you can more than likely deduct the cost of the premiums.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have questions about what your can take advantage of as a person claiming a dependent on your taxes, you can turn to Mark Dicus & Company to help you understand what you qualify for. Call us today!