Families who have dependent children with a learning disability might be paying more taxes than they need to. If this describes you, learn how to save money and cut your tax bill.
It's a fact: if you are required to file a federal income tax form at the end of each calendar year, you need to find out how you can reduce your tax liability. The most common way to reduce this is to take all of the tax deductions and credits that you are legally entitled to. Deductions and credits help to reduce the amount of tax liability that you owe.
A deduction is basically defined by the Internal Revenue Service (IRS) as being an allowed amount that reduces the total of your income that is taxable.
A tax credit, on the other hand, is defined as being a "dollar for dollar" credit that reduces the actual amount of income tax you owe.
With there being approximately seventy million children in the United States population, it's no wonder that children account for the most common deductions and tax credits taken.
Of that population, approximately five million children have some sort of disability. These range from physical to mental handicaps. Mental handicaps include having an Attention Deficit Disorder, retardation, and more. If you have at least one child who has a learning disability, then you or/and your spouse may be eligible for tax credits on your federal income taxes.
You should visit a licensed income tax preparer to find out if you actually qualify. He or she can determine your eligibility based on your income as well as other information that you supply. A licensed income tax preparer can also file an amended income tax return for you, for the past three years, if necessary. That means, that if you have been entitled to certain deductions or tax credits for your child who has a learning disability, and you haven't taken them, then you can go back up to three years and still claim them.
Generally, though, one of the tax credits that might be available to you is in regards to the special care of your child. If you and your spouse (if applicable) both work, there is a dependent care credit that's available for parents. But, the qualifying children must be thirteen years old or younger. However, there is no age limit with a child who has a learning disability and cannot be left unattended.
Whether your child is cared for by an individual, or if he or she attends a childcare facility, you may be able to receive a dependent tax credit based on a certain portion of the cost you pay for that special care.
There is also the "Earned Income Tax Credit". Any married couple who files their federal income tax return together and has at least one dependent child under nineteen years of age may qualify. Again, a family who has a dependent disabled child can qualify for this same credit no matter how old the child is. Currently, the adjusted gross income of the family must be below about thirty five thousand dollars.
There are also several tax deductions that you may qualify for if you have a child who has a learning disability. To find out the specific details of tax credits and deductions, visit the Internal Revenue Service's web site at www.irs.gov/. The IRS has publications that you can read online or download to your computer to read.
