Kids can be stressful at times, but the good news is they can save your butt during tax time. Today we are sharing some of the tax benefits that kids and other dependents bring to you.
Dependent Tax Deductions
You may be able to claim more dependent tax deductions and credits as a family than single taxpayers. However, if you’re not aware of these deductions and credits, you might be losing out on significant tax breaks.
Child Tax Credit
The child tax credit is better than the deductions because your taxes are reduced dollar for dollar. In addition, claiming this credit gives up to $3,600 for children under 17. Married couples qualify if they don’t make more than $110,000, and single parents qualify if they don’t make more than $75,000.
Child and Dependent Care Credit
Uncle Sam understands that childcare is expensive. Therefore, working parents or parents actively pursuing employment for dependents under 13 can claim the Child and Dependent Care Credit.
This credit is another dollar-for-dollar reduction of your taxes for up to 35% of your expenses. This equals $3000 for one child or $6000 for two or more children. Depending on your income, 20% – 35% of your childcare expenses (based on your income) can be reduced. Nursing school, private kindergarten, daycare, and after-school programs all qualify.
Earned Income Tax Credit
The Earned Income Tax Credit is available to W-2 employees and self-employed people who make less than a certain amount. How much you get depends on the number of children you have. Below are the phase-out limits.
3 or more children – $51,464 ($57,414 for married joint filers)
2 children – $47,915 ($53,865 for married joint filers)
1 child – $42,158 ($48,108 for married joint filers)
The credit ranges from $1,502 (no children) to $6,728 (three children). The best part is this is a refundable tax credit so it can result in a tax refund.
How to Claim Dependent Tax Credits
The next time your kids are working your nerves, remember that they save your butt big time during tax season. If you file your taxes online, they will make sure that you claim all the tax credits you deserve, and all you have to do is answer a few simple questions.
Even if you have the best insurance plan, you still might end up paying medical bills. However, all hope is not lost. You can still get a tax break from your medical expenses, which can help reduce your overall medical costs.
In 2019, the IRS allowed you to deduct medical expenses that exceeded 7.5% of your adjusted gross income.
Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.
The “Medical” Expenses You Can Deduct
The term medical is used broadly, but it does include dental and vision expenses. So whether you’ve gotten contact lenses, glasses, veneers, braces, or root canals this year, you can claim the medical expenses tax deduction.
It doesn’t just stop there, though. Other medical deductions can include medical devices, psychiatric treatment, psychological treatment, preventative care, prescriptions medicines, and even surgeries, all fall under the scope of “medical deductions” for your taxes.
Even those travels to and from the doctor’s office and monthly insurance payments are considered deductibles.
Medical Expenses That You Can’t Deduct
Before you claim every procedure as a deductible on your taxes, you need to know what is not allowed as an IRS medical deduction this year.
If you’ve been reimbursed for the procedure by either an employer or insurance agent, you are unable to deduct the expense from your taxes. This does not include medical pre-payment plans, though. So, you’re going to be covered if you had help from a credit provider for the procedure.
Cosmetic surgeries cannot be claimed either unless they were a “life-saving procedure” or contributed to a fix to a serious health issue you were facing. For most cosmetic surgeries, you won’t be covered for medical deductions. You also cannot claim everyday health and hygiene products or over-the-counter pharmaceuticals.
Is Medical Insurance Tax Deductible?
Any out-of-pocket health insurance premiums you pay for plans that include medical care are tax deductible. (Medical insurance coverage, with certain exceptions, cover treatment such as hospitalization, surgery, and X-rays; prescription medications, insulin, dental care, lost or broken contact lenses, and long-term care.)
You can write off these costs for you, your spouse, and your dependents when filing your taxes.
Is There a Tax Deduction for Medical Mileage?
Yes, If the transportation costs are primarily for and necessary to the medical care, you may be able to claim mileage reimbursement from the IRS.
You can choose between the following two approaches when subtracting mileage for medical care:
Standard personal car mileage is $0.16 per mile.
Actual costs you’ve incurred for using the car to transport patients
Itemization or Standardization?
While it would be a dream to claim both, you aren’t able to claim both an itemized tax deduction with your standard deduction. Essentially, your medical deduction needs to be significant, along with other itemizations, to give you a great deduction.
If you’re not sure which is better, you don’t have to worry. Online tax calculators offer you a simple solution by processing all the data and picking the one that gives you the best tax refund.
Are Pet Medical Expenses Tax Deductible?
Unfortunately, you cannot claim medical expenses for dogs as a deduction on your tax return. Only if your pet is a recognized service animal, such as a guide dog, would there be an exception.
If your pets are recognized service animals, you may be able to deduct the costs of their medical care if you have a physical handicap, hearing loss, or vision impairment. Purchase, training, and upkeep costs for the animal, including food, grooming, and medical care, may be paid.
The IRS does not classify therapy animals as trained service animals. Visit Publication 502: Medical and Dental Expenses for further details on the deduction of medical costs for pets (service animals).
If you do have a licensed service animal, you can list the expenses for keeping the animal in good health on Schedule A under medical expenses.
Make Sure to Pay Your Medical Expenses
Although paying your medical expenses isn’t fun, it’s the only way you can deduct them from your income.
When it comes down to it, Uncle Sam believes you are only owed a deduction if you’ve paid up on the current bill. You cannot ask for deductions on future expenses, so you want to be current on the bill. Even if you pay it on a credit card, it is “paid” by you.
So, if you’ve been plagued by medical issues this year, consider an itemized deduction for this tax season.
How to Claim the Medical Expenses Deduction
To claim the medical expenses deduction, you have to itemize your deductions. Additionally, you should only claim this deduction if it is higher than the standard deduction. If you decide to itemize your deductions, you have to file Form 1040 and attach Schedule A.
How to File Taxes Online Using TurboTax
When you file with TurboTax Online they will search over 350 tax deductions and credits to find every tax break you qualify for so you get your maximum refund.
How Much Can I Claim as Part of My Refund Advance?
H&R Block operates a robust application procedure, so you’re never going to be able to take out more than you expect to get back as part of your refund. See how much your tax refund is with the free tax refund calculator from H&R Block.
These loans are not supposed to be large. You can claim five different loan amounts, which are: $250, $500, $750, $1,250, $3,500.
Remember, this is still a loan. It’s not your tax refund.
Why Have I Never Heard of This Before?
This tax-filing season is a special tax season because this is the first time that the H&R Emerald Refund Advance program has been available to online users.
Previously, you could only get a refund advance if you applied in an H&R Block store.
Understandably, for many taxpayers who didn’t live in major cities, they didn’t have this option.
That’s why the rolling out of this program is a great counter to the extended waiting period for tax refunds.
What are the Interest Rates?
What makes the H&R Block refund advance a standout option is the interest rates are different. The big change is that there’s no interest charged on refund advances.
This may come as a shock for many because practically every other tax platform does charge interest on the refund advances, they give out.
To be honest, if you must pay interest on money you’re already entitled to, it makes sense to wait instead of taking out a refund advance.
But with H&R Block’s scheme, now you can get a refund advance without paying more.
How Do I Get My Money?
Once you have been evaluated, you should find that the money has already been deposited into your account on the same day. Take note that this money will never be placed in your bank account. It will be placed on the prepaid H&R Block Emerald Mastercard. You can use this in the same way as any other type of credit card. However, there’s no overdraft protection, so make sure you have a high enough balance prior to making a purchase.
What’s the Approval Process?
There are no credit scores to worry about when you deal with H&R Block. Axos Bank is the lender, in this case. The approval process works differently from a conventional personal loan.
The main piece of criteria is how much you’re entitled to based on your tax return. All you need to provide is evidence of your refund through your taxes and appropriate identification.
It’s a different type of loan because it’s a type of advance. And the loan time usually only lasts a couple of months at the most.
Who Should Use the H&R Block Emerald Refund Advance?
You should always consider whether a refund advance is right for you. Even though this is a ‘no risk’ loan because you can’t spend more than your loan amount and the interest rate is 0%, you still need to figure out if this is the correct move for you.
We always recommend thinking about whether you really need the money right now. Unless you have an emergency expense to take care of, you may decide that it’s not worth applying for a refund advance.
It’s widely expected that refund advances will be far more popular this year, though, due to the additional waiting time for receiving refunds. However, you can’t truly decide until you have a rough idea of how much you could get back through your taxes this year.
See below how the H&R Block w2 form Early Access finder allows you to get your W-2 online.
So What is the H&R Block W2 Finder?
H&R Block’s W-2 Finder s is one of the tools you can use to get your W2 form online and file your taxes fast. And that ultimately means receiving your refund faster as well.
You don’t need to wait for your W-2 to come by mail when using the H&R Block W-2 Finder. Once you pull your W-2 in electronically, it is safely stored and ready to start filing with H&R Block. Best of all, you will receive it for free.
How Do I Get My W2 Form Online?
Using H&R Block’s W-2 Finder is fast and straightforward. It’s a three-step process.
Go to the W-2 Finder Search Page
Enter your employer’s name or Federal Employer Identification Number (FEIN) to verify they participate in the program.
If they do, follow the onscreen instructions so your W-2 can be sent electronically to H&R Block. If it’s not currently available, you will receive an email notifying you when it is.
You will need some essential documents to file your taxes accurately and get the maximum refund you deserve. Your W-2’s are one of those necessary documents to have before filing. Here are three important boxes it contains:
Box 1: Your Total Pay
This is the most important part of your W-2 that will always be used. It is the total compensation you’ve received for the year. It is higher than your net pay because it includes other deducted amounts, such as taxes, insurance, and defined contributions.
Box 2: Federal Income Tax Withheld
This box holds the key, to whether you will receive a refund or owe money back to the IRS. It should be reasonably close to what your tax liability is. If it’s off too much, you need to update your W-4 form which determines how much taxes should be held from your paycheck in the future.
Box 12: Special Benefits
Box 12 is a special box that helps offset your taxable income. It lists the tax breaks you’re entitled to from contributing to plans such as a flexible spending account, 401(k) retirement plan, and adoption benefits, for instance. The more items listed here, the better your chances to lower your tax liability.
Tax Filing with H&R Block is beneficial for you because they will diligently go through all the necessary steps to find you the most money during tax season.
What if I Need a W2 From a Previous Year?
Don’t worry if you can’t find your W-2 online from a previous year. Getting a copy of a W-2 is relatively easy. There are two options you have for you to get a W-2 from an earlier year.
Option #1: Contact your Employer
Contacting the employer who issued the lost W-2 is the easiest way to obtain a copy. Your employer or former employer’s payroll department is sure to be saving important tax data like W-2s. Ask them to send you a copy. It is very simple and won’t take much time.
Option #2: Contact the IRS
If it isn’t feasible to contact the employer who issued the W-2, your next option would be to contact the IRS and ask for a 4506 form. There will be a cost to this option, and it will take some time. It is always better to get the W-2 form to file your tax return from a previous year instead of not filing at all.
Here is what you should be aware of when requesting a W-2 form for a previous year from the IRS:
The IRS holds onto a record of your previous W-2s (also every income tax file with your Social Security Number) from the previous 7-10 years.
The W-2s are only available from the IRS one year after they have been filed.
A Form 4506 will need to be filled out. Make sure your writing is legible, and don’t forget to sign it.
Every W-2 requested will have a service fee of $57. Make checks payable to “The United States Treasury.”
The mailing address to send Form 4506 and the check are located on the second page of the form. Make sure both Form 4506 along with the check is sent to that address.
It will take as long as 2 months, longer in some cases, for the IRS to process your request and mail you a copy of the W-2 form.
How to get a lost w-2 video
Proceed With Preparing And Submitting Your Previous Year Tax Return
It should be evident that getting your W-2 online from your employer or previous employer is better. However, there might be situations where you don’t want to contact your previous employer, or there is no way of actually contacting them. In either case, the IRS, for a fee, will send you copies of the W-2 from prior years.
Once you have that W-2, you can now use it to proceed with filing your tax return from that previous year.