Income Tax Issues for Families
Taxes! Taxes! Taxes! Tax preparation can be particularly stressful for busy parents. Here's some professional advice to guide you through the reams of information on taxes.
Childcare and Education Deductions
If you’re an organized person, you’ve probably spent some time this month checking your files and getting ready to submit your tax return. Given today’s complex tax code, it’s hard to know if you’re really taking advantage of every rule that you can use to save as much as you can. But why should you miss out just because you don’t have a professional preparer or don’t have the time to sift through reams of advice on the Internet to find those tips that pertain to your financial situation?
Eva Rosenberg, also known as Tax Mama, offered timely advice about costs associated with your children. “Remember that … you can deduct education costs on the front of the tax return, even if you don’t itemize,” she said. Rosenburg adds that if you’re still paying for childcare, be sure to collect your provider’s name, address, and social security number or federal identification number. “It wouldn’t hurt if you also included his or her phone number on that same piece of paper. You never know when some tax agency wants that, too,” she says.
Patricia Smalls, of Personal Accounting Total Services in New York City suggests that careful planning for your child’s education will offer you a tax break down the line as well.
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