Happy Father's Day to all the dads out there! Whether you are crawling on the floor with your new baby or walking into the real world with your college graduate, here are a few pointers on how to save some money come tax time.
Welcome to one of most rewarding "jobs" there is -- Fatherhood. Your new "job" could put money back in your pocket come tax time. Though there are many credits and deductions to consider, a few you might have just become eligible for include:
- Deductible medical expenses: All the out-of-pocket expenses for prenatal doctor visits as well as the hospital costs for mom and the baby and all well-baby doctor visits qualify.
- Additional Exemption: That additional exemption means a deduction in taxable income of4,000 for 2015.
- Child Tax Credit: You may qualify for a1,000 Child Tax Credit and you may even be able to increase your refund by all or part of this credit.
- Earned Income Credit: A new child may qualify you for up to $6,242 of Earned Income Credit if your income is less than 53,267 and all or part of this credit may also increase your tax refund.
- Child Care Expenses: If you, and your spouse (if married), both work you may be eligible for a credit of up to1,050 (2,100 if two or more children) of your childcare expenses.
Dads to Growing Children
You've got some child-rearing experience under your belt and probably some extra sleep, using your skills and extra time rounding out your child's life could be worth more than the memories.
- Charitable Contributions: When you coach, umpire, or otherwise volunteer your services to your children's outside activities, you may be able to claim a charitable contribution deduction. Mileage to and from the volunteer activity is deductible at 14 cents per mile. Additionally, the unreimbursed cost of equipment and uniforms necessary to participate in the volunteer activities is also considered a charitable contribution.
Congratulations -- you safely navigated the winding road to graduation. You get to add a few more tax saving opportunities to your playbook.
- You may still be eligible for earned income credit this year and future years if your child continues school on a full-time basis. Children who are full-time students for some part of any five months of the year are still considered to be dependents.
- You can claim up to $2,500 of the interest paid during the year if you are helping your child by getting student loans in your name.
- You can claim a credit for your dependent child who is in college. There is a credit available for students who are at least half-time and in the first four years of school or a lesser credit for students attending less than half-time or are beyond the first four years of their education.
Don't sweat the details in June, make note of these tips for tax time and if you need help ensuring you get all the credits you deserve seek the help of a TaxPro when the time comes. For now, whether you are a new dad, the dad of growing children, or the dad of a grad, relax and enjoy your day. You've earned it!
This blog post is part of the 'FinEd for Parents' blog series, curated by the editors of HuffPost Financial Education to provide parents with expert advice and tips for managing family finances and raising money-savvy kids. To see all the other posts in the series, click here.