Watch the Family and Education Tax Planning video here.
Family & Education
While the Tax Cuts and Jobs Act of 2017 has reduced or eliminated many tax breaks for the next several years, most child and education-related breaks remain intact or even enhanced.
Child Credit
For each child under age 17, you may be able to claim a $2,000 credit. This credit phases out for higher-income taxpayers, but the income ranges are much higher than before the Tax Cuts and Jobs Act. If your dependent child is age 17 or older or if you have a dependent elderly parent, a $500 family credit is available, also subject to income-based phase out.
Tax credits reduce your tax bill dollar for dollar, so for many taxpayers, these expanded credits will make up for losing the dependency exemptions.
Education Credits
If you have children in college now or are currently in school yourself, you may be eligible for the American Opportunity Credit. The maximum credit, per student, is $2,500 per year for the first four years of postsecondary education. Again, this credit is subject to income-based phaseouts, but if your income is too high for you to qualify, your child might be eligible.
Be sure you and your family take advantage of available credits and other tax-saving opportunities to make saving taxes a family tradition.
