If you have children, you could get cash back and owe less in taxes with the following tax credits:
Child Tax Credit:
You can save up to $1,000 in taxes for each child in your family under 17. The Child Tax Credit and the Additional Child Tax Credit give you money back. To qualify for the tax credit:
- Your child must have lived with you for more than half the year
- Each child must have been under 17 in 2014
- You must have earned over $3,000 in 2014
- You and your child must have valid Social Security Numbers or Individual Tax Identification Numbers .
- You must file a federal tax return
Child and Dependent Care Credit:
If you paid someone to take care of your child (under age 13) or a qualifying dependent, you may be able to get the Child and Dependent Care Credit. This credit can help with the expenses you had to care for them and it will reduce the amount of taxes you owe to the IRS. You must meet the following conditions to claim the credit:
- You paid
someone to care for your dependent so you could work or look for work.
- You (and your spouse, if filing jointly) must have earned income, been a full-time student or been unable to care for yourselves.
- You must include the name, address and tax identification number (Social Security Number, ITIN or Employer Identification Number) of the care provider on your tax return. The care provider cannot be your dependent.
- The qualifying dependent must have lived with you for more than half of 2014.
- The credit can be up to 35 percent of your expenses, depending on your income.
- You must include a valid Social Security Number or ITIN for every dependent you claim.
- For children, dependent care expenses include (1) daycare, nursery school or preschool for a child below the level of kindergarten, (2) expenses for before or after-school care of a child in kindergarten or a higher grade (tutoring, summer school or camp can’t be included as dependent care expenses).
- To receive the credit you must file a federal tax return.
*Remember, the deadline to file your federal and state taxes is Wednesday, April 15, 2015.