Whether you are a new parent or have been a parent for years now, it’s no secret that childcare expenses are well, expensive! Thankfully, JLW Tax & Bookkeeping has found a way to get you the tax credit you deserve to help with those costs. Keep reading our blog to discover 4 tax credits you are potentially eligible for and can claim on your upcoming tax return. Our accountants are here to help Springfield, IL residents get the refunds they deserve as hard-working parents.
Child Tax Credit
The Child Tax Credit (CTC) is one of the most common for parents that are needing financial assistance in raising their young children. For this credit, the maximum amount of money you can receive per child under the age of 17 is $2,000 every tax year. It is a partially refundable credit, meaning that part of your earned income will not be able to be taxed, increasing your yearly refund amount. JLW Tax & Bookkeeping Services accountants will make sure to check your eligibility for the CTC when you make an appointment to file your 2021 taxes.
Child & Dependent Care Tax Credit
The Child & Dependent Care Tax Credit (CDCTC) is a non-refundable tax credit for parents that are paying for a person or persons to care for their children ages 13 and under. This allows the legal parent to work or look for work so that money can be saved to provide for their child or children. Depending on your financial situation, this credit can be worth up to $35 of your child’s expenses or a maximum of $3,000. JLW Tax & Bookkeeping Services in Springfield, IL is here to help you get the credit you need to ensure the health and safety of your children with the CDCTC.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is given to parents that have low income and are receiving weekly or bi-weekly wages, are self-employed, or create revenue from farming. The EITC is designed to decrease the amount of taxes you may owe at the end of the year while also ensuring a refund to support your household. The amount of your refund will vary depending on the amount of income you receive. At JLW Tax & Bookkeeping Services in Springfield, IL, we help evaluate your refund options, including the EITC.
American Opportunity Credit
The American Opportunity Tax Credit (AOTC) is a great option for parents with older children ages 18-24 and attending college. If your child is enrolled full-time in a 2 or 4-year college, you are eligible for this credit! Unfortunately, there are not many credits for parents with old children, however, the American Opportunity Credit is among the most popular and universal. The maximum amount you can claim for your child is $2,500 per student, per year. If you believe that your child qualifies for the AOTC, contact JLW Tax & Bookkeeping Services in Springfield, IL at 217.679.1872 for more information and a free consultation.
