Now that it’s tax season, it’s time to consider what tax breaks you as a parent might be able to claim.
1. Childcare tax break
One way to save is to set up a Dependent Care Flexible Spending Account, or DCFSA, during Open Enrollment. You might be able to save up to 30% in taxes on the money you put toward it.
2. Child care credit
If you did’t sign up for a DCFSA, check out the Child and Dependent Care Credit when filing your taxes.
3. College savings plans deductions
“Many states offer full or partial tax deductions for parents saving for college in state-sponsored 529 plans.” (“Taxes made easy: 5 breaks for childcare and education.” Jeanie Ahn. Yahoo Finance.)
4. College tax credits
Read more on these tax credits and deductions here: “Taxes made easy: 5 breaks for childcare and education”.