You may be entitled to beneficial tax credits when you have children. Some credits are specifically aimed at parents and can be extremely helpful in saving money or in compensating for the cost of raising children. You can claim your child as a dependent in most scenarios, including children who were just born in the current tax year. The following credits are available to parents who meet the qualifications:

Child Tax Credit: You may be eligible to claim the Child Tax Credit for every child under the age of 17 by the end of the tax year you claim as a dependent. The total credit amount is $2,000 per child, but you can qualify for an additional child tax credit if you receive a smaller amount.

Child and Dependent Care Credit: You can claim this credit if you have paid another party for the care of a qualifying person. This benefit applies to any child care expenses incurred for a child under 13 years of age while working or looking for a job.

Earned Income Tax Credit: There is a tax credit for those who earned less than $54,884 in 2018 that can be particularly beneficial for working parents. Parents with three eligible children can earn up to $6,431 of the Earned Income Tax Credit, which must be claimed on their return. Adoption credit: There is a credit for parents who have taken a child during the tax year to claim some of the costs incurred.

Higher education credits: There are two separate post – secondary education credits, which can help reduce higher education costs. You may be eligible to receive either the American Opportunity Credit or the Lifetime Learning Credit if you have paid the expenses to attend college for you or an employee. Both can reduce your federal taxes and the American Opportunity Credit can be reimbursed up to $1,000.

Student loan interest: You can deduct interest paid on certain student loans without separately listing all your deductions on your return.