The IRS offers unique tax benefits to parents, including a number of tax credits that can help you lower your tax bill. Taking advantage of the tax benefits of having a child can help you maximize your refund and save for your child's future. Learn more about the newborn tax credits you...
Deductions forstudent loan interestor home mortgage interest Tax credits foradopting a child Tax credits forqualifying dependents Tax credits forearned income We’ll explore the specifics of these tax benefits below. How do I claim a tax deduction? As you prepare to file your tax return, you c...
Having a child or taking on an adult dependent, like a parent. Starting a side hustle or a second job. "Life events like getting married, having a child, maybe you get a second job or you start a side hustle – those things could all potentially change what your tax liability is," ...
Take the time to explain to your child the basics of Social Security and Medicare and the benefits of earning credits in these programs. Teaching Your Child About Taxes When your child starts to earn their own money, start talking about taxes right away. Go over that first paycheck stub. Ta...
In return for these significant benefits, the IRS imposes certain requirements for who can contribute to an HSA: The individual must be covered by a High Deductible Health Plan (HDHP) (and have no other health coverage or be enrolled in Medicare) and they may not be claimed as a d...
Being married offers many tax benefits. Take, for example, the spousal IRA, which allows couples who are married filing jointly to contribute to two IRAs per year, even if only one spouse works outside of the home.
A Section 125 cafeteria plan is a benefit plan sponsored by the employer that allows employees to access certain taxable and nontaxable pre-tax benefits. Employees can choose from at least one taxable benefit, like cash, and one qualified benefit, like a Health Savings Account (HSA). Premiums...
Let’s explore those tax benefits in more detail. TurboTax Tip: A 529 plan account is set up to save for a beneficiary’s educational expenses. There can only be one beneficiary per 529 account, but a single person can be the beneficiary for multiple accounts. Are 529 plan contributions ta...
(e.g., pensions or annuities); fringe benefits (e.g., personal vehicle, meals, lodging, personal and family educational benefits, low-interest loans, payment of personal travel, entertainment or other expenses, athletic or country club membership, and personal use of one’s property); and ...
[Many fringe benefits received by employees are untaxed, such as employer contributions to pensions and insurance.] 4. Whether earned income derives from labor, capital, or land. [Interest income on many forms of saving for retirement is exempt from income tax, such as the interest on ...