“Becoming a parent is the most life-changing event that many will experience. You are suddenly not only responsible for yourself, but also another person who depends on you for everything.
“When getting ready to embark on this exciting (and, perhaps, scary) new adventure, preparation is key. Both before the baby arrives and in the weeks after, it’s especially helpful to be ready for the financial changes to come. It’s estimated that total child-rearing expenses from birth to age 17 for a middle-income American family
is now $233,610. Although the range of expenses across families is wide, the truth is that adding a little one to the family is quite expensive.” (Haven Life. 27 June 2018.)
Read all of Haven’s suggestions on their financial checklist for new parents:
The 2018 financial checklist for new parents
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
There are two college tax credits that you might be able to gain: the
American Opportunity Tax Credit and The Lifetime Learning Credit.
Read more on these tax credits and deductions here: “Taxes made easy: 5 breaks for childcare and education”.
Parents, low-income families, students, teachers and mass commuters are among those who will benefit from a $760 billion tax deal that was signed into law on December 11, 2015.
“The deal, which was combined with a $1.1 trillion spending package for 2016, is dominated by business tax breaks. But it also includes more than $250 billion worth of tax breaks for individuals”:
Bigger refund when you have kids.
More generous tuition tax credit.
Higher refund for low-income working families.
Fairer treatment for mass transit commuters.
Permanent deduction for residents of states without income taxes.
Teacher deduction made permanent.
Deduction for mortgage insurance premiums.
Income exclusion for mortgage debt that’s been forgiven.
Tuition tax deduction.
All information is from CNN Money; read the full article here: “How you’ll benefit from the new tax deal”.
This entry was posted in
Government Laws, Interesting News and tagged homeowners, income, IRS, money, parents, rebate, refund, students, tax deal, tax deductions, taxes on . December 21, 2015
Your busy kitchen can be the most accident-prone place in the house. House Logic has an article on how to child-proof your kitchen, starting with the most essential and simplest steps.
House Logic’s tips include: getting rid of problem items, putting hazardous items out of reach, locking things up, and changing your habits to keep your kids safe.