Do you remember when your doctor told you that you were pregnant with multiples? Whether you were told that you were having twins or triplets, there’s little doubt that you were simultaneously shocked, frightened and overwhelmed. Chances are that your taxes didn’t immediately pop into your mind. As difficult and costly as it can be raising multiples during the year, you will enjoy the benefits when it comes time to file your taxes. Here are five deductions and credits that you qualify for as parents:
1. Child-Tax Credit
The more children you have, the more money you can shave off of your taxes with the child-tax credit. Each child that you have is worth $1,000 when it comes to this credit, and there is no limit on the number of children that you can claim. Every child in your household that is under the age of 17 can be claimed on your taxes. You should be aware that while you can’t cap out on children, you can cap out on income. Married couples with an AGI that exceeds $110,000 and single parents who rise above $75,000 are phased out.
2. Child and Dependent Care Credit
If your children are under 13 years old, the government assumes that you will be paying for child care. If you are a student, working, looking for a job, or disabled, you can claim a maximum credit of $1,050 per child and no more than $2,100 for two or more children. While this may not seem like much, knowing that you will get the credit can make the cost of daycare a bit less painful.
3. Tuition Deduction
Paying for your children’s college tuition can net you some steep deductions on your federal filings. If you’re filing together as a married couple, your AGI must be less than $160,000 to qualify for the deduction, and your AGI must be less than $80,000 if you’re filing as a single parent. If you paid all or part of your children’s tuition, you can deduct up to $4,000 for your children’s college or university education.
4. Student Loan Interest
If you are funding your children’s college education with loans, you may still qualify for a tax break. In order for you to qualify for a deduction, your children must be enrolled in college for at least part time, or six hours, for the entire school year. The maximum amount that you can claim is $2,500; not a small chunk of change by any means.
5. Standard Exemptions
Did you know that each member of your family can earn you a tax-deductible exemption? Each person can net you a $3,800 deduction when it comes time to file your taxes. This means that if you have triplets and file jointly, you will qualify for $19,000 in tax credits.
Being told that you are having multiples can feel like a kick in the gut, especially if you were only planning on one child. Once you get over the shock of the situation, you will find that having twins or triplets comes with money saving benefits that you didn’t even consider. When it comes time to file your taxes, those expensive little bundles of joy will be putting money back into your pocket.
Johanna Cook is a mother of twin girls who blogs about child-related tax benefits. Use Johanna’s tips and see how much you will save on your 2012/2013 taxes.
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