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8 Ways Parents Can Cut Their Taxes and Smooth the Process

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Parenting should be about the squeals on Christmas morning, turkeys drawn from hand tracings, and off-key singing in the back seat of the car, not potentially annoying or costly issues at tax time. With a big hat tip to the folks at IRS.gov, here are eight tax tips for parents:



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Does Everyone Need to File an Income Tax Return?

Not everyone is required to file an income tax return each year. Generally, if your total income for the year doesn't exceed the standard deduction plus one exemption and you aren't a dependent to another taxpayer, then you don't need to file a federal tax return. The amount of income that you can earn before you are required to file a tax return also depends on the type of income, your age and your filing status.

How to Write Off Sales Taxes

The Internal Revenue Service (IRS) permits you to write off either your state and local income tax or sales taxes when itemizing your deductions. People who live in a state that does not impose income taxes often benefit most from this deduction. However, you might also be better off deducting sales taxes instead of income taxes if you make large purchases during the year and your total sales tax payments exceed those for state income tax. You can use either the actual sales taxes you paid or the IRS optional sales tax tables.

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rostra

While it was my Party, the GOP/Nixon created the Earned Income & Child Tax Credits, hoping to pull people out of poverty, the prgrams need to be modified. Each and every President has expanded these two programs, when in fact, the country cannot afford to give a tax break for unlimited children. Time to put a limit on the deduction. Many people now claim more in child Tax credits then they earned in gross income.

March 28 2014 at 8:44 AM Report abuse rate up rate down Reply