The Wall Street Journal, based on Census Bureau data, reported recently that nearly half (49.1%) of the population now lives in a household that receives government benefits and that this is up from 3...

Not every expense related to education for yourself or your child is tax deductible or qualifies for tax-free withdrawals from special education accounts. Here are some items you may want tax assistan...

With the fall term just around the corner, students and their families are getting ready for school. They are buying clothing, books, and computers. Payments are being made for tuition and fees. Can U...

Couples who are married on December 31 are viewed as married for the entire year. Most couples file joint federal income tax returns, and for good reasons. Doing so allows the couple to use the tax ta...

Divorced or separated parents may be ordered by a court to make support payments for a child of the marriage. Even an unwed parent may be instructed to support his or her child. The recipient of child...

If you receive assistance from your employer to pay for dependent care costs, you may be able to exclude this fringe benefit. To be excludable, dependent care benefits must be provided by your employe...

The amount of the child and dependent care credit you claim depends on your AGI. However, no matter how large your AGI, you are entitled to a minimum credit of 20% of eligible expenses. The maximum cr...

There are a number of conditions for claiming the dependent care credit; you must satisfy all 6 of them to claim the credit:Incur the expenses to earn income. The purpose of the dependent care cr...

If you hire someone to care for your child or other dependents to enable you to work or incur other dependent care expenses, you may be eligible for a tax credit of up to $2,100. The credit is a perce...

The earned income credit is based on a set percentage of earned income. However, you don't have to compute the credit. You merely look at an IRS Earned Income Credit Table, which accompanies the instr...

To be eligible for the credit, you must have earned income from being an employee or a self-employed individual. The amount of the credit you are entitled to claim depends on several factors: the numb...

Low-income taxpayers are encouraged to work and are rewarded for doing so by means of a special tax credit called the earned income credit. The earned income credit is the second-largest program, afte...

If the child tax credit you are entitled to claim is more than your tax liability, you can receive the excess amount as a "refund." The refund amount is limited to the lesser of:The amount of the...

The U.S. Department of Agriculture estimates that it costs $286,050 for a Midwestern middle-class family to raise a child to age 17. In recognition of this cost, you can claim a tax credit each year u...

Even if you do not provide more than half the support of another person, you may still qualify for a dependency exemption ($3,700 in 2011) if you have a multiple support agreement. This agreement appl...

In 2011, you can claim a deduction (called an exemption) of $3,700 for each person who qualifies as your dependent. There are 5 tests for claiming a dependency exemption for someone who is not a quali...

When parents are divorced, separated, or never married, which parent claims the dependency exemption for the couple's child? Special rules apply. The exemption belongs to the noncustodial parent if th...

In 2011, you can claim a deduction (called an exemption) of $3,700 for each child who qualifies as your dependent. There are 4 tests:Test 1. Being your child. For purposes of a qualifying child, y...

A fixed deduction ($3,700 in 2011) is allowed to every taxpayer who supports another person and meets other tests. The deduction is called a dependency exemption.Conditions for dependency exemptio...

Each taxpayer (other than someone who is another taxpayer's dependent) automatically is entitled to a deduction just for being a taxpayer. The amount of the deduction, called the exemption amount, is ...