Tips to Help Make Tax Filing Less Stressful
As a parent of young children, you are used to multi-tasking and keeping track of everyone’s schedules and needs on a daily basis which probably means you are aware that the deadline to file your state and federal tax return or request a six-month tax extension is less than a week away on Monday, April 18, 2023. In this blog post, we’ll go over some frequently asked questions, tips, advice and resources parents of young children may find useful during this tax season.
Filing your taxes can be a daunting task, especially if this is your first time. One question many parents have is: How much income do you have to make to file taxes? According to the IRS, the answer depends on your age, your marriage status and your total income in 2022. In short, see the chart below but visit www.irs.gov/newsroom/who-needs-to-file-a-tax-return for the specifics.
According to the Internal Revenue Service (IRS) and tax experts, there are benefits to filing even if you are not required to do so. For instance, you may receive a refund because of the income that was withheld from your pay or because you qualify for a tax credit such as the Child Tax Credit. Other benefits include being able to apply for financial aid for college or technical school and it helps build your future social security benefits.
There are a few things that can help make your filing smoother and more productive.
Know Your Tax Benefits
As a parent, you are entitled to certain tax benefits that can help reduce your tax bill. Some of these benefits include:
Child Tax Credit: A credit of up to $2,000 per child under the age of 17 with up to $1,500 being refundable.
Child and Dependent Care Credit: A credit for expenses paid for the care of your child under the age of 13, or for a dependent who is unable to care for themselves.
Earned Income Tax Credit: A credit for low to moderate-income families with children.
Make sure you understand which tax benefits you are eligible for, as they can significantly reduce the amount of taxes you owe or help in providing a refund.
Keep Good Records
Keeping good records throughout the year can save you a lot of time and headaches when it comes to filing your taxes. Make sure you keep track of expenses related to your children, such as child care, medical expenses, and education expenses. Keep receipts and invoices organized that you can easily access when it comes time to file.
Don't Forget About Education Credits for Yourself or Older Children
If you were enrolled at least half time in a program leading toward a degree, certificate or other recognized educational credential for at least one academic period during the tax year, or have children in college or other post-secondary education programs, you may be eligible for tax credits related to education expenses. Check here for more guidelines and make sure you keep track of tuition, fees, and other education-related expenses, as they may be deductible on your tax return.
Consider Working with a Tax Professional
If you're feeling overwhelmed by the tax-filing process or would like more guidance, consider hiring a tax professional to help you out. A tax professional can help ensure that you're taking advantage of all the tax benefits you're eligible for. While there is a cost associated with hiring a tax professional, it can be well worth it for the peace of mind and potential savings.
There are some lower cost and free tax preparation services available, such as what the United Way of Greater Atlanta provides to low-to-moderate income ($60,000 and under) working individuals and families through a partnership with the IRS. Find out more about the Volunteer Income Tax Assistance (VITA) and MyFreeTaxes programs here. Depending on the location, the tax prep service is virtual, drop-off, walk-ins welcome or appointment only.
If you are required to file taxes but need more time to prepare, you can request a six-month extension of time for filing. See the IRS’ information here on who is eligible and how to request an extension.
