Child Tax Credit
During the first two years of the pandemic (is it over?
Partial credits might be allowed for income above that amount.
See the IRS website for applicable forms andmore eligibility.
To get extra credits, first your child must meet all criteria for the Child Tax Credit.
Additional medical expenses related to the disability might be deductible.
Applicable forms for filing will be at your states Department of Revenue website.
Adoption
If you adopted a child in 2023, there areseveral tax considerations.
The maximum amount for 2023 is $15,950 per child.
The credit is non-refundable; however, the excess can be carried for five years.
These exemptions dont include when an individual, such as a step-parent, adopts their spouses biological child.
Child care
In general, yes, you’re free to deductchild/dependent care expenses.
Daycare facilities should issue you a summary at the end of the year.
Nanny care is deductible, assuming the family is doing it legally.
If you are paying under the table, you cannot deduct expenses.
Its not nothing, but its not everything.
Some employers have non-taxable fringe benefits for employees and reimburse them for some of the cost.
There areseveral qualifying factors, including if the expense and the educational institution qualify for exemptions.
If you or your spouse are getting advanced education, you may also be eligible.
There are two types of credits.
TheLifetime Earning Creditis up to $2,000.
TheAmerican Opportunity Tax Credit(AOTC) applies to the first four years of higher education.
The maximum annual credit per eligible student is $2,500.
