Parents who welcomed lil ones in the past year may want to give their tots a special treat today. Your new addition is not only the apple of your eye, but a tax break for you too. For mamas who are rushing to get their forms in the mail, here are five tax tips new parents may have missed:
- Childbirth classes. According to Ernst & Young, one of the most commonly overlooked tax deductions is childbirth preparation class fees. Considered a medical expense, it can be listed in that category on your return.
- Child tax credit. Each US taxpayer receives a $3,650 personal exemption for each dependent child under the age of 19 (or under 24 years old if they are a full-time student).
- Child care tax credit. Up to 35 percent of child care costs (up to $3,000 for one child and $6,000 for two or more tots) can be used toward a credit on your returns. Once tots enter school, Summer camps are considered to be child care, and their tuition fees can be used toward that credit.
- Babysitting tax credit. If you hire a babysitter to watch your tots so you can do volunteer work with a charitable organization, you can deduct the fees as a charitable contribution.
- Adoption tax credit. Adoptive parents can claim up to $12,150 (depending on their income) to cover agency, attorney, and travel fees.