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When you have children – especially if you’re first-time parents – you might not know all of the tax implications that come along with kids and their care. You can certainly claim your children as dependents on your tax return, and that will provide you with some important deductions. However, there are more than just the dependent credits. If you pay for childcare because you’re working and can’t be there all the time for your children, you can also deduct that. Many people don’t realize that childcare is a tax-deductible expense, so they miss the credit and don’t get any money back that they should have received.
Sometimes the IRS will send you a letter and notify you if you miss an obvious credit, because their system catches it, but they have no way of knowing whether you paid for childcare. They won’t be sending you any letters to make sure you’re claiming that credit. One of the best ways to remember to take the credit is to follow blogs that offer free tax tips on how to claim the credit. The filing program will ask you plenty of questions, including whether you paid someone for childcare. If you did, the program will help you put in the right information and get the maximum refund that you’re owed. It’s a great feeling to know that you don’t have to worry about that.
Children can be expensive, but they can also really help you out on your taxes. There’s no reason why you shouldn’t claim every credit and deduction that you’re rightfully entitled to, either. That money belongs to you, and you should go ahead and take it so that you can put it to good use for your children’s future. Pay down debt, start a college fund, or simply do something fun as a family – there are plenty of great options for a tax refund.









