Tax Tips for Families

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March 9, 2018
Tax Tips for Families

Image Copyright Ted Grussing Photography – Used with permission

Tax season is upon us once again. For most of us it can be a stressful time trying to get everything together and figured out before April 15th. This week we hope to alleviate some of that stress by featuring a few helpful tax tips for families.

These tips were first suggested by Constance Brinkley-Badgett and we believe they could be very helpful to consider if you fit the criteria!

  • Claim your Children

If you have any kids, consider updating your W-4 that adds at least one extra withholding allowance. Which brings us to our next point…

  • Write off your Kids

After you have claimed them, make sure you do not overlook the dependency exemptions. These will reduce your income by $4,050 per child! You may also qualify for the child credit, which can be worth up to $2,000 per qualified child.

  • Have you Adopted, or will you Adopt Soon?

It’s a lengthy process, but the adoption expenses you incur can result in a tax credit. So make sure you keep records!

  • Compare your Deduction Options.

Sometimes individuals choose not to itemize, which may impact their deductions! Be careful not to overlook things such as: student loan interest, contributions to health savings plans, IRAs, job related moving expenses, etc.

  • Contributions for your Health Savings Account

We’ve talked extensively about Health Savings Accounts recently. But did you know you can deduct your contributions for a HSA, as well as any contributions you made to a child-care reimbursement plan?

  • Contribute to your IRA

You can contribute to your IRA up to April 15th for the previous year! So if you’re going to owe taxes, you can make a contribution and at least save a little on the taxes you will owe.

Remember, situations vary and it’s important to talk with a trusted tax professional if you need help.

Have a wonderful weekend!

Sources: Brinkely-Badgett, C. (n.d.). Contributor. Retrieved from http://blog.credit.com/author/constance-brinkley-badgett/