When it comes to tax matters, how well-versed are you? Do you do your own taxes? Do you have someone prepare them for you, like a CPA or a tax service? How do you know you’re getting all of the family tax deductions that are available? Here, we’re going to go over a handful of the best tax exemptions and credits for families.
Several studies done on successful businesses, millionaires and investors have shown over and over again that spending more time on your taxes can significantly increase your net worth. By spending less on your taxes you are effectively putting more money to work on growing your business and investments. Working with expert tax professionals, attending tax seminars, and introducing yourself to as much education and as many tools as possible will help you protect your hard-earned money and the rest of your assets.
For the time being, let’s check out some tax deductions and credits that you and your family may be able to make good use of.
The Best Family Tax Exemptions and Credits
As a family, you’ll likely run into plenty of expenses, particularly while the children are young. The good news is that either indirectly or directly, to save money on your tax bill, some of those expenses can turn into exemptions and credits where your taxes are concerned. For families, here are the seven most frequently used:
- Education tax credits
- Qualifying widow(er) or head of household filing
- Adoption credit
- Earned income credit (working family, EITC, or EIC tax credit)
- Child tax credit
- Dependent and childcare tax credit
- Dependency exemptions
Remember, the fact you have children introduces you to some tax credits and deductions that those without children are not privy to. Take advantage of them whenever possible. Don’t miss out on tax savings simply because you’re unaware of the credits and deductions allowed you as a family.
Exemption Removals
Unfortunately, not all deductions that may have been available at one time are still available today. That’s one of the most confusing things about taxes – they seem to change like the weather!
Personal exemptions were something that could be claimed prior to the 2018 tax year. Those have changed. For each qualifying person, you used to be able to claim $4050 of taxable income reduction. That meant significant savings, the more people in your household who qualified.
Personal exemptions can no longer be claimed, as of 2018, however. Depending on your precise circumstances, other tax act changes may completely or partially offset the removal of this once popular tax reduction. Again, speaking to a professional about your taxes is a smart move, considering how often things change.
In fact, since the writing of this piece, exemptions may have been removed or added, so always check with someone who is fully versed on tax matters. Who can you turn to? Read on.
Could You Use Some Assistance Reducing Taxes?
Make sure you’re reducing your taxes as much as possible by working with Protect Wealth Academy. Some of the services we provide include real estate training, self-directed IRAs, bookkeeping, asset protection, estate planning, stock market training, and income tax reduction. If you’d like to know how we can be of assistance to your business, your family, or you, give us a call at 800-276-1430 between the hours of 8 AM and 6 PM MST. You can also get started by filling out our convenient contact form online.
