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How Having Children Changes Your Tax Return

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Having children has many implications in your life and brings amount a wealth of changes. Not only is your life unrecognizable after having children, your taxes go through a big change as well.

Accountant San Marcos experts recommend that tax filers completely understand all relevant deductibles that apply to their taxes. You not only claim your child as a dependent on your taxes, you can also file for a tax break for dependent-care credit and the child tax credit. For example, any baby-sitting or day care for children under the age of 13 can quality for a tax credit if you and your spouse both hold jobs and if one parent is studying full-time or disabled. Single parents also meet eligibility requirements of the dependent-care credit.

The tax credit is determined based on your income and can be between 20 to 30 percent on the amount spent on childcare. Nursery school and kindergarten are usually eligible, but private school is not. Overnight camp does not qualify either.

It is best to speak with a qualified expert that can help you make the right choice. Accountant Vista CA tax specialists and other tax experts alike help their patients understand what they qualify for and what is their best option. For example, in some cases in may be better to use the employer-sponsored dependent care savings plan and not use the credit all together.

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