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4 tax breaks every parent should know about

Source: finance.yahoo.com/news/4-basic-tax-breaks-every-parent-should-know-about-150940602.html - Feb 17, 2017

The average cost to raise a child to age 17 is a whopping $245,340 for a middle-income couple, according to the US Department of Agriculture. But thankfully during tax season, parents can get a bit of relief with some tax breaks. If you have kids, read on to get a breakdown of a few ways to put some cash back in your pocket.

Exemptions for dependents

When you file, you generally take personal exemptions for you and your spouse that reduces your taxable income by $4,050 per person. But if you have kids, you can reduce your taxes by that same amount for each dependent under the age of 19, or a student under the age of 24.

For a family of four, that means you reduce your total taxable income by $16,200 [$4,050 x 4 = $16,200.] To qualify for this deduction, the income cap for married couples filing jointly is $311,300. For single filers, the income cap is $259,400.

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Category: General Business