April 15 is a date looked upon with a bit of anxiety by the American tax payers, since it is the deadline for the tax returns, but there are some ways to reduce the tax bills that you owe both to the state which you reside and to the United States of America. After all, you might find that the amount of money you owe could be decreased by hundreds or even thousands of dollars, since your children can help cut your tax bill.
In order to do so, you may want to dedicate some of your time thinking about the persons who depend on you. It is rather a significant reduction if you are to do so, because every dependent that you declare is the equivalent of a 3,950 dollars decrease of the taxable income. So, at the end of the day, you save approximately one thousand dollars, taking into consideration the fact that the federal tax bracket is 25 per cent. The conditions that a dependent must satisfy are the following: the dependent has to be a United States citizen or inhabitant and also they are not be declared as dependent by any other person than you. Basically, your children or grandchildren are the ones who would meet all the requirements for this declaration. They have to be birth-related to you, adopted, or they have to be your step-children. They also have to be under the age of 19 or 24, in case they are full-time students. It is true that at these ages your children can earn their own income, but still you are indebted to support half of their needs.
Also, do not forget that it is essential that your children have a social security number.
You can save one thousand dollars for every dependent that you declare, and who, by the end of the last year, was under 17, lived for at least six months with you and could not have yield more than half of their support themselves, via the child tax credit.
However, they need a social security number, a condition which functions as an incentive for the fresh parents to declare their infant and get them a social security number as soon as possible.
In addition, remember that these do not represent the entire set of conditions. In the case of a married couple, that are filing jointly, they will stop to benefit from these tax reductions if their modified gross income overcomes the amount of 110,000 dollars. On the other hand, singe tax payers must have a MAGI under 75,000 dollars.
Image Source: Blog.StudentChoice.org
