 |
|
|
|||||
With tax season fast approaching, its the perfect time for parents to take advantage of valuable tax deductions and credits that can reduce their tax bill or increase their refund. Lisa Greene-Lewis, a tax expert with over 20 years of experience, has made it her mission to break down complex tax laws in a way thats accessible and actionable for families. As a trusted voice in the industryfeatured on programs like The Ellen Show and The Steve Harvey ShowLisa shares her insights on the most important tax breaks parents should know about. This conversation has been edited and condensed for clarity. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/acupofambition_logo.jpg","headline":"A Cup of Ambition","description":"A biweekly newsletter for high-achieving moms who value having a meaningful career and being an involved parent, by Jessica Wilen. To learn more visit acupofambition.substack.com.","substackDomain":"https:\/\/acupofambition.substack.com","colorTheme":"salmon","redirectUrl":""}} What are the top tax breaks parents should take advantage of before filing? Navigating tax season as a parent can feel overwhelming, but there are several valuable tax deductions and credits designed to ease the financial burden of raising children. Understanding these benefits can help you maximize your refund and keep more money in your pocket. One of the most well-known tax benefits for parents is the Child Tax Credit, which provides up to $2,000 per child under the age of 17. Even if you dont owe taxes, you may still be eligible for a refundable portion of up to $1,700. For parents who rely on childcare to work or search for a job, the Child and Dependent Care Credit can help offset costs. You can claim up to $1,050 for one child or up to $2,100 for two or more children under 13. Even summer day camps and sports camps qualifythough overnight camps do not. If your child has a disability, there is no age limit for this credit. If youre working and earning an income, you may also qualify for the Earned Income Tax Credit (EITC), which can provide a significant boost to your refund. The amount depends on your income and number of children, with families of three or more kids eligible for up to $7,830 in 2024. Many eligible taxpayers miss out on this benefit, so its important to check if you qualify. For parents with college-aged children, there are additional tax credits to help with higher education costs. The American Opportunity Tax Credit offers up to $2,500 per dependent child for the first four years of college, if they are pursuing a degree and enrolled at least half-time. If your child is taking courses beyond the first four years of collegewhether for a degree or simply to improve job skillsyou may still qualify for the Lifetime Learning Credit, which provides up to $2,000 per return. Additionally, if youre paying student loan interest for your child, you may be able to deduct up to $2,000 per tax return. Its important to note that only the person claiming the child as a dependent can take advantage of these education-related tax benefits. If your child files their own taxes and claims these credits, you wont be able to do so. A conversation between parents and students is key to determining who should claim these benefits. Finally, if you are a single parent who provides more than half of your households financial support, filing as Head of Household can increase your standard deduction to $21,900significantly higher than the $14,600 deduction for those filing as single. Make sure to review your eligibility each year and consult a tax professional if needed to ensure youre maximizing your benefits. Are there any last-minute moves families can make to lower their taxable income or increase their refund? First, gather all your documents in one place before you beginthis helps ensure you dont overlook any important deductions or credits. One surprisingly common mistake is entering incorrect Social Security numbers, so double-check that you have the accurate numbers for yourself and any dependents. This is especially important for claiming valuable tax benefits like the Child Tax Credit, Earned Income Tax Credit, and the Child and Dependent Care Credit. Dont forget about opportunities to reduce your taxable income. You can still make a 2024 contribution to your IRAup to $7,000 (or $8,000 if you’re 50 or older)until the April 15 deadline, and you may be able to deduct these contributions. Similarly, if you have a High Deductible Health Plan (HDHP), you can contribute up to $4,150 to a Health Savings Account (HSA) if you’re on a self-only plan, or up to $8,300 for a family plan, with potential tax deductions available. What steps should families take now to prepare for next years tax season? One of the most effective is maximizing contributions to a 401(k) plan. In 2025, you can contribute up to $23,500or $30,500 if you’re 50 or older. Plus, thanks to the Secure Act 2.0, individuals aged 60 to 63 can contribute even more, up to $34,750. Not only do these contributions lower your taxable income, but they may also make you eligible for the Retirement Savings Contribution Credit, which offers up to $1,000 for single filers and up to $2,000 for those married filing jointly. This credit is essentially free money for prioritizing your retirement savings. Beyond retirement planning, parents can also find tax savings in everyday expenses. Keeping receipts for qualifying expensessuch as sending your child to summer campcan help maximize available deductions or credits. Additionally, if youre able to itemize your deductions, now is a great time to declutter and donate to a 501(c)(3) charitable organization. These donations can be deducted, offering financial benefits while supporting causes you care about. {"blockType":"creator-network-promo","data":{"mediaUrl":"https:\/\/images.fastcompany.com\/image\/upload\/f_webp,q_auto,c_fit\/wp-cms-2\/2025\/03\/acupofambition_logo.jpg","headline":"A Cup of Ambition","description":"A biweekly newsletter for high-achieving moms who value having a meaningful career and being an involved parent, by Jessica Wilen. To learn more visit acupofambition.substack.com.","substackDomain":"https:\/\/acupofambition.substack.com","colorTheme":"salmon","redirectUrl":""}}
Category:
E-Commerce
If you have been on the job market recently, you know how challenging it can be. Lots of tech companies, for example, are pulling back on hiring. Federal workers are being laid off by the thousands. And some types of jobs are simply not as available as they once were. Particularly in short supply are those prized white-collar positions paying $94,000 or more. So, any serious job seeker must sharpen their skills to land a job. You can increase the likelihood of a successful search by avoiding the following six big job search mistakes: Mistake No. 1: Applying for too many jobs The first mistake is applying for too many jobs and, as a result, not giving enough time to any one application. Some individuals send in applications for 100, 200, or even 400 jobs. That is far too many. Statistics reveal that job seekers who apply for 21 to 80 jobs have about a 30% chance of receiving a job offer, while candidates who apply for more than 81 jobs have only a 20% chance of receiving an offer. More applications typically get worse results. To get that next big job, focus on applications where you’re a decent fit, and give more attention to each one. Mistake No. 2: not customizing your résumé The second (and very common) mistake is sending every company the same generic résumé. Contrary to popular belief, most hiring companies do scrutinize résumés. After the interview, its the second-most-important vehicle for assessing a candidate. Providing boilerplate wont often get you the job. Focus your work history and the bullet points under each job youve held. Align this material with the job youre applying for. For example, dont put down that you optimized supply chain operations if you are applying for a leadership role. Instead, say you led a supply chain team. Avoid jargon and technical language that might be misunderstood. Be sure to include only relevant work experience. If you have waited on tables at your university or worked in a donut shop, leave it out unless youre applying for a service- or people-focused job. Mistake No. 3: Not tapping into your network A third job search mistake is overlooking your network. A LinkedIn study shows that 70% of job seekers get their jobs through successful networking. Dont go it alone. Ask those you know for leads and introductions. Successful networking is usually a multistep process. Most of the time, success is not through your first-degree network but through your second- or third-degree network, writes career coach Sarah Felice on LinkedIn. This means you have to have a lot of conversations, coffee meetups, Zoom meetings, and phone calls. If you are interested in a position in a particular industry, approach an acquaintance who is knowledgeable about that field. Ask them to connect you to relevant people. If you’re interested in moving up within your company, do your research and find out which department head you should talk to. Introduce yourself with a well-written letter. Such steps may take time, but they will be much more likely to get results. Mistake No. 4: Poor interview prep To ace the interview, you’ve got to research the company and the job, prepare a script to guide you, and develop answers to possible questions. The knowledge you gain as you prepare will enable you to align your background with the companys culture and the job. It will also help you ask intelligent questions and show that you take the company and the job seriously. An interview script will provide an all-important guide for you. It doesnt have to be memorized or delivered verbatim. It simply will remind you how you want to open the conversation, what your message is, how you are going to develop your message, and how you will close the conversation. Without a script to guide you, you wont come across as clear-minded and confident. (For more discussion of how and why to prepare a script for your job interviews, see my book, The Job Seekers Script.) Mistake No. 5: Using weak language Be mindful of the words you use throughout the interview process. Eliminate anything that has negative overtones. That includes phrases like I cant, I dont, Im not sure, or I dont know. Eliminate filler words like um, ah, and you know. Avoid overly casual speech like You guys. And dont judge the questions by saying things like, Thats a good question. You’re there to answer questions, not evaluate them. Apologetic language, such as Im sorry, also tests poorly. You may think you are being thoughtful when you apologize, but doing so can make you sound weak. Mistake No. 6: Not following up The final job search mistake to avoid is not following up after your interview or a conversation with someone you networked with. Write a note of thanksan email or an actual written noteand do so promptly. People appreciate that thoughtfulness, and often it will make all the difference if somene is deliberating about hiring you.
Category:
E-Commerce
Barbara Corcoran is one of Shark Tanks longest-running sharks, with an estimated net worth of approximately $100 million. But shes also one of 10 kids from a working-class family. By age 23, shed held more than 20 jobs. By 52, she sold her real estate company for $66 million. Corcoran knows how to build wealth. Her financial strategies are bold and unconventional. They buck traditional financial wisdom andfull disclosurethey can be also risky. But could they help you build wealth? 1. Dont Bother Saving Money Ive never saved a dime my whole life, Corcoran told CNBC Make It in 2023. Rather than letting her money sit idly in a bank account, Corcoran immediately identifies the best way to spend anything she earns, often investing it into something with the potential to grow her wealth. Of course, investing all your earnings is risky. No one knows when an unexpected expense or income loss is coming and youll need to live on your savings. But consider the root of Corcorans advice: How much money can you safely risk investing in yourself or a business venture you believe in? How much money could you reasonably put into a stock or other fund with the potential to grow at a higher rate than your savings account? 2. Be The Highest BidderOn Valuable Assets I am always willing to overspend on any property thats good, Corcoran said in an interview. Overspending on anything might sound counterintuitive, but Corcoran is specifically referencing quality assets with high growth potential. Corcoran especially believes in using this principle for real estate investments. She says that if youre willing to spend more than anyone else on a property you know is quality and be patient, you will eventually make that extra money back and then some. 3. Put All Your Eggs in One Basket One piece of advice people hear all the time, and I just dont believe it, is Diversify. Dont put all your eggs in one basket, Corcoran told CNBC Make It. Diversification is investing in different areas so you dont lose everything from a downturn in one area of the economy. In Spring 2025, you might hesitate to even put all your literal eggs in one basket, but Corcorans advice here is about investing in areas where you have expertise rather than diversifying just for the sake of it. Corcoran has historically focused all her money in real estate, where she can constantly leverage her knowledge and experience to evaluate current and potential investments. Corcoran isnt alone in this view. Warren Buffett famously called diversification protection against ignorance. His late Berkshire Hathaway cochair Charlie Munger also referred to the practice as diworsification. Both investors made billions by focusing their investments in industries where they were already experts. Focused investments can lead to outsize returnsbut also outsize losses, so the expertise piece of Corcorans advice is vital. Dont just toss all your money into one thing you dont understand, she said. Stick to what you know.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||