7 Tips for Getting the Biggest Refund Check Possible

Photo by michaeljung from Shutterstock

5. Deduct dependent care expenses

When you’re taking care of kids or elderly parents, the expenses can seriously affect your budget. Fortunately, some of those expenses are actually deductible. If you’re still working and you actually pay someone to take care of your kids or aging parents, you can minimize your tax liability and maximize your refund through the Child and Dependent Care Credit.

The Child and Dependent Care Credit is great, because just like the Child Tax Credit, this one is also subtracted from your final tax bill dollar for dollar, not deducted from your taxable income. There’s a trick though… In order to qualify, your kids must be younger than 13 and your elderly parents mentally or physically impaired.

According to IRS,  you can claim up to $3,000 in expenses for one qualifying individual or $6,000 for two or more individuals. The actual amount of the credit is only a percentage of those costs, between 20 and 35 percent based on your one-year-income.

PREV1 ... 34 5 67NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

10 Things Your Boss CAN’T Legally Do To You

5. Promising a paid position to an intern This can be viewed as an illegal and unpaid training period which ca be punished with federal laws. 6. Discriminate They cannot discriminate against any employees based on: religion, color, sex, nationality,

7 Most Murderous Children

We live in a world surrounded by shocking and evil things. We expect the worst from humans, horrific and truly heinous crimes, however, sometimes these come from the ones that we least expect, children. A rocky situation at home, bad

From Our Network: