Ms. Kelly Haden, CPA with Ericksen Krentel & LaPorte, LLP was a guest speaker at one of our Friday night Single Parent Meetings. This is just some of the information she shared with us.
If you have a simple tax return and are comfortable doing it yourself, go to www.IRS.Gov - section Free File. On this site and you can complete your tax return for free.
ASK YOUR ACCOUNTANT ABOUT:
Dependent Care Credit – If you are working and pay for child care or before and after school care, see if you qualify for the Dependent Care Credit (IRS Form 2441)
Save for your child’s college education with START Saving Plan at www.startsaving.la.gov. This is a state plan and contributions may be exempt from state income tax.
If you are paying for college for yourself or a dependent, you may qualify for the American Opportunity Credit, Lifetime Learning Credit or a tuition deduction.
If you have children in grades K-12, you may qualify for the LA Education Credit or the school expense deduction on your Louisiana Income Tax return
If you are single you may qualify for the Earned Income Credit – if you don't claim any children and your income is less than $14,590; if you claim 1 child with income less than $38,511; claim 2 children with income less than $43,756; or if you claim 3 or more children with income less than $46,997. Information regarding qualification for the credit can be found on the IRS website at www.IRS.gov - Forms and Publications - Earned Income Credit.
If you own a home in Louisiana you may be entitled to the refundable LA Fair Plan Credit.
Form 8332 is a Release of Claim to Exemption for Child by Custodial Parent and can be used to give your child’s exemption to the non-custodial parent. You may want to consider completing this form annually if your child’s exemption alternates between the custodial and non-custodial parent. Consult your tax advisor
If you have medical travel expense or if you travel when you donate your time to a church or non-profit agency that you may be able to write that off as an itemized deduction.