{"id":24111,"date":"2026-04-21T10:03:49","date_gmt":"2026-04-21T10:03:49","guid":{"rendered":"https:\/\/incredipros.com\/?p=24111"},"modified":"2026-04-21T10:03:50","modified_gmt":"2026-04-21T10:03:50","slug":"children-and-taxes-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=24111","title":{"rendered":"Children and Taxes: What You Need to Know"},"content":{"rendered":"
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Children are a blessing. Even when they test you (looking at you, teenagers and \u201cthreenagers\u201d), you wouldn\u2019t trade them for anything.\n <\/p>\n

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Get expert money advice to reach your money goals faster!<\/p>\n<\/p><\/div>\n

You know what else kids are?\u00a0Expensive<\/em>. From buying thousands of diapers to saving for college, it all adds up. And fast. Even Uncle Sam knows how expensive raising kids can be. That\u2019s why parents are eligible for a slew of tax breaks.\n <\/p>\n

Let\u2019s take a closer look at each of them and how they can save you some money this tax season.\n <\/p>\n

1. Child Tax Credit<\/h2>\n

For the 2025 tax year (filed in 2026), the\u00a0child tax credit\u00a0is $2,200\u00a0per child under the age of 17\u2014with an income limit of $400,000 for married couples and $200,000 for individuals.2<\/sup>\n <\/p>\n

Here\u2019s how the tax credit works. Let\u2019s say you have a family of four: Mom and Dad and their two kids, Kenny and Jenny. Together, Mom and Dad bring home $100,000, and they plan to take the\u00a0standard deduction.\n <\/p>\n

They would get the standard deduction of $31,500, which would make their\u00a0adjusted gross income\u00a0$68,500 ($100,000 –\u00a0$31,500\u00a0= $68,500).3<\/sup>\n <\/p>\n

Based on fancy tax bracket math, they owe for the year about $7,743 in taxes.4<\/sup>\u00a0But the $4,400 child tax credit ($2,200 apiece for Kenny and Jenny) chops their tax bill by more than half\u2014now they only owe $3,343.\u00a0\n <\/p>\n

Pretty sweet, right?\n <\/p>\n

2. Child and Dependent Care Credit<\/h2>\n

Did you pay someone to care for your child so you could work or look for a job? You could qualify for the\u00a0child and dependent care credit! This credit can help you claim 20\u201335% (depending on your taxable income) of some of your childcare costs\u2014up to\u00a0$3,000\u00a0for one child (under the age of 13) or up to\u00a0$6,000\u00a0for two or more.5<\/sup>\u00a0Okay, that\u2019s a lot of numbers\u2014let\u2019s break it down.\n <\/p>\n

Let\u2019s say you have one kid and last year you spent $3,500 on childcare with a taxable income of $50,000. Based on your income, you\u2019d be eligible to claim 20% of the first $3,000 of those costs, leaving you with a pretty nice $600 tax credit. That\u2019s not chump change!\n <\/p>\n

Qualifying childcare expenses include more than just day care. Don\u2019t forget about nanny services, after-school care and summer day camps. Just make sure you have the name, address and taxpayer identification number for each care provider you\u2019ve used.\n <\/p>\n

3. Adoption Credit and Exclusions<\/h2>\n

If you adopted a child this year, congratulations on your new addition! Not only did your family grow, there\u2019s also a good chance you\u2019re eligible for the\u00a0adoption credit.\n <\/p>\n

For 2025, this credit covers up to\u00a0$17,280\u00a0of your expenses per adopted child.6<\/sup>\u00a0According to the IRS, qualified\u00a0adoption expenses\u00a0include:\n <\/p>\n