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Income Tax: What You Can Deduct

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529 savings account  IRS  Internal Revenue Service  adoption  child care  college  college education  college fund  cost of children  costs of children  tax credits  taxes 
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The tax man cometh. But are you taking advantage of all the credits to which you're entitled? The cost of child-rearing is mind-blowing, which is why Uncle Sam feels inclined to cut you a break -- literally. Before you complete your taxes this year, make sure you've taken advantage of these tips for you filing. Are you aware of the child and dependent care credit ? If your child is in daycare, you can report up to $3,000 for one child and $6,000 for two children. You must identify the person or organization which cares for your child. Although some parents stop claiming these costs when their children begin school, they still qualify for a credit if the child is in summer camp. The only catch with the child and dependent credit is that both parents must be working, seeking employment or going to school. Do you set aside money for child's college education?

 
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