According to many researches, the biggest part of the United States’ families is multi-generational. Some families choose this option for practical reasons, some for cultural, others for practical reasons. But, as a fact, more than 70 million Americans live under the same roof with their families. Of course, in most cases it may become a reason for chaos; however, there is no doubt that living with your family members can be both funny and beneficial at the same time. Those who file their taxes in 2021 can find out that there are several important family-related tax advantages that can be beneficial for your big family. So, you should try to ensure that you apply for all possible deductions and tax credits that you are eligible for.
A Home or A House
It doesn’t matter whether you’ve owned a house for many years, or bought it last month. There are several important tax deductions that you can be eligible for:
- Points: If you have paid origination fees for receiving a rate from your lender, then you can easily deduct some of them. Or, if you bought a home and paid points for it, you can deduct them for the year that they have been paid. Additionally, if your home was refinanced, then you can also deduct these points.
- Interest: If you paid a mortgage interest when you have been buying a home, you can deduct these interests during your tax year.
- Property Taxes: If you have ever paid quite expensive property taxes, then we have good news for you, since you are able to deduct them on your taxes!
Family and Children
If there are children in your family, then we are rushing to make you happier, since there are lots of tax benefits for parents. Thus, if you have a child who is under 13, and was in day care during last year, you can apply for Child and Dependent Care Credit, and claim up to nearly 36% of $3,000 which is nearly $1,050 for child-related costs for one child, and nearly 35% of 6,000 for two or more children.
Additionally, those families which have more than two children may apply for Earned Income Tax Credit, and claim a credit more than $6,660. Tax Credit is the most widely-applied tax program, since nearly 25 million taxpayers received it during the recent tax season. Usually, it is nearly 2,476 for each filer.
On top of that, with Child Tax Credit, you can claim up to $2,000 for each child under 17. But if your children are in college, you can apply for American Opportunity Tax Credit (AOTC). But, keep in mind that this type of credit is refundable, and can be used for the first four years of college. You can also apply for a Lifetime Learning Credit, which is up to $2,000.
Take Care of Your Grandparents!
If you support your grandparents by providing them with financial help, then you can claim them as dependents on your taxes by considering them as qualified relatives. Also, if your grandparents can be claimed as dependents, it means, you are able to apply for Other Dependent Credit and get $500.
It doesn’t matter whether you live in a small family or in a big one, you have to ensure that you apply for all the possible tax credits and tax deductions that your family is eligible for.
If you are not sure of your knowledge in this sphere, contact Prestige Auditors, and we will help you figure out all the possible tax credits and tax deductions that you can confidently apply for. Our team is available 24/7 in order to help taxpayers all over the United States take all possible advantages from taxes. Give us a call, and taxes will no longer be a problem for you.