If You Are A Parent, You Want To Make Sure You Are Aware Of These 2014 Tax Breaks
As a parent, you are always looking for a way to save a little extra money here and there, to put towards your general monthly expenses—or simply to save towards your child’s secondary education. One way to save a little extra money is to ensure that you are aware of the 2014 tax breaks below. While you are likely aware of the Dependent Exemption and Child Tax Credit that you qualify for, there may be a few other tax breaks that apply to you.
Medical Mileage Deduction
One tax break that no parent ever wishes they will have to account for is the Medical Mileage Deduction. This deduction is not designed for general doctors’ appointments, but if you have a sick child in need of increased medical attention, then this deduction may apply.
There are many expenses associated with adoption—such as attorney fees, court costs, and travel expenses. If you adopted a child, you may be eligible for a credit amount of up to $12,970 to help offset some of your expenses. While this credit may not cover all of your adoption expenses, it can drastically reduce the total amount of taxes you pay in 2014.
Hiring Your Child In Your Small Business
If you are the sole proprietor of a small business, you may be able to hire your child part time—and then write off their wages as a business deduction. As an added benefit, employees under the age of 18 are not required to pay any federal income taxes if they make less than $6,100 annually. Children under 18 are also not required to pay federal employee taxes for Social Security or Medicare.
How Do You Know If You Qualify For These Child Tax Breaks?
The child tax breaks above require you to meet specific criteria. The best way to determine if you meet the minimum requirements to qualify for these tax breaks is to reach out to a local tax professional who can take an in-depth look at your taxes and finances.
If you live in Roanoke, VA, then Micah Fraim is a local CPA who can assist with your all of your tax and financial planning needs.