10 Special Tax Benefits for Parents in 2013<br />

10 Special Tax Benefits for Parents in 2013

The fiscal cliff was good for something; use the American Taxpayer Relief Act in your favor come tax time

10 Special Tax Benefits for Parents in 2013<br />

credits can help offset the costs of higher education.

The American Opportunity Tax Credit (AOTC) is an education credit that can reduce your federal income tax dollar-for-dollar. This credit lets you claim this partially refundable tax credit of up to $2,500 for qualified higher education expenses. Like a few other tax breaks, the AOTC was included in the fiscal cliff agreement for five years.

For more details, consult IRS Publication 970, Tax Benefits for Education.

9. Student loan interest

You know that student loan you signed or co-signed for to pay your kid’s college bill? You may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions.

The new law also offers for 2012 and 2013 a deduction of up to $4,000 for tuition and other fees paid. For more information, see IRS Publication 970.

10. Self-employed health insurance deduction

If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child wasn’t your dependent.

Use these tax benefits to get at least some relief from the cost of raising children. And if you can’t nab any of these perks, tell those kids of yours it’s time for them to get a job! Hey, even a 10-year old can walk a neighbor’s dog, right?

This article originally appeared on AskTheMoneyCoach.com.

Lynnette Khalfani-Cox is a personal finance expert and co-founder of the free financial advice site, AskTheMoneyCoach.com. Follow Lynnette on Twitter @themoneycoach.

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