Eight Tax Benefits for Parents

This information brought to you by the Law Office of Martin Cantu and San Antonio Tax Help.


Are you a parent? Here are eight tax benefits for parents



1. Dependents. In most cases, you can claim a child as a dependent even if your child was born anytime in 2012.   

2. Child Tax Credit. You may be able to claim the Child Tax Credit for each of your children that were under age 17 at the end of 2012. 

3. Child and Dependent Care Credit. You may be able to claim this credit if you paid someone to care for your child or children under age 13, so that you could work or look for work. 

4. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. If you have qualifying children, you may get up to $5,891 dollars extra back when you file a return and claim it. 

5. Adoption Credit.  

6. Higher education credits. 

7. Student loan interest. 

8. Self-employed health insurance deduction - If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child. 

Popular posts from this blog

5 Types of IRS Offers You Need to Know About

Image
  If you're struggling with IRS debt, it can feel overwhelming and stressful. However, there are options available to help you resolve your tax debt and move forward with your financial future. One of these options is an IRS offer, which comes in five different types. Learn more about these offers and how they can help you get back on track.   Offer in Compromise. An Offer in Compromise (OIC) is one of the most well-known types of IRS offers. It allows taxpayers to settle their tax debt for less than the full amount owed. To qualify for an OIC, taxpayers must demonstrate that they are unable to pay their full tax debt, either through a lump sum payment or through a payment plan. The IRS will consider factors such as income, expenses, and asset equity when evaluating an OIC. It's important to note that not all taxpayers will qualify for an OIC, and it should only be pursued after consulting with a tax professional.   Installment Agreement. An Installment Agreement is
Read more

Unlocking the Secrets of an Offer in Compromise: A Comprehensive Guide - Chapter 4

  Chapter 4 – Filing Details/Payment Terms/Important Consequences IRS FORM 656 – OFFER IN COMPROMISE Use IRS form 656, Offer in Compromise to submit your offer. You can access the form via this link .   Be sure to read the accompanying booklet. Note that there are different forms of Form 433, Collection Information Statement, that are a part of the submission process. Form 433-A is for use by Wage Earners and Self-Employed Individuals. Form 433-B is used by Businesses. Also note that there is a specific form, 656-L, for use if you are claiming doubt as to liability. The IRS site also has a pre-qualifier tool. But don’t get too upset if it reports that you are not eligible. The tool does not take into account any special circumstances or other issues that may be relevant to your situation. Please refer back to this section of my Blog for a more detailed discussion of this issue.   Who Can File An Offer? An Offer in Compromise (OIC) can be filed by any individual or busines
Read more

Unlocking the Secrets of an Offer in Compromise: A Comprehensive Guide Chapter 3 - How Much Do I Offer?

  Calculating the Amount of your Offer in Compromise – What is Your Reasonable Collection Potential (RCP)? Drum roll please! This is what you’ve been searching for – how much do I offer? How little can I get away with? Why not low ball them?   Here are the two most important concepts to understand before you start your OIC.   Key Point 1 - You’re not buying a car or a house. The Settlement Agent does not work on commission. They don’t have to settle and the decision to settle rests entirely with the Settlement Officer. Any offer or counter-offer you make has to be backed up by the numbers.   Key Point 2 – Determine your Reasonable Collection Potential before making an offer. Reasonable Collection Potential (RCP) is a key factor considered by the IRS when evaluating an Offer in Compromise (OIC). RCP refers to the amount of money the IRS believes it can collect from a taxpayer based on their assets, income, and future earning potential.   The IRS will consider a taxpaye
Read more