Tax Tip of the Day – Make Sure You Claim Your Child Tax Credit
According to 2008 statistics the average cost to raise a child is nearly $200,000. Couple that with the cost of college and you have a might fine sum that is needed to raise a child. The IRS offers taxpayers who have children several tax deductions and credits that mean more money in your pocket. Here is what the IRS offers:
- The child tax credit is worth up to $1,000 per child through age 17.
- Taxpayers with children are allowed an exemption which can potentially save from $370 to $1,295 per child on their tax return.
- Taxpayers who have children under the age of 12 and send them to child care or camp qualify to receive a credit between $600 and $1,050 per child.
Please find out from your Tax Advisor what credits apply in your particular situation.
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!