Money Saving Tax Tips for ParentsHere are some tax tips for parents to help lower their tax bill and get a bigger refund!

Dependent ExemptionYour child is likely to qualify to be your dependent, making you eligible to take a dependent exemption. An exemption, much like a deduction, reduces your taxable income, which can lower your tax obligation.

Child Tax CreditWith the Child Tax Credit, you may be able to reduce your tax bill by up to $1,000 for each qualifying child under the age of 17. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

Child and Dependent Care Credit

If you paid someone to care for your child, spouse or dependent last year, you may be able to claim the Child and Dependent Care Credit. You may qualify if you paid for child/dependent care so that you (and your spouse, if married) could work or look for work. You and your spouse must have earned income during the tax year to claim the child and dependent care credit..

Earned Income Tax CreditThe Earned Income Tax Credit is a tax credit for low to moderate-income working families. It is a refundable tax credit, which means if the credit reduces your tax bill to $0, you receive the remaining balance as a refund. The amount of the credit depends upon the number of children in the household as well as the your income for the year. The credit starts to phase out once your income rises above a certain threshold.

 Adoption Tax Credit

The adoption tax credit can offset the costs of adopting a child. Income limits apply, and you can only claim a certain dollar amount per adoptive child. Some of the expenses that may qualify for this credit include: court and attorney fees, related travel expenses, related meal expenses. Adopting a child with special needs can allow you to claim the entire adoption credit, even if it exceeds your actual expenses. However, it is nonrefundable, so it can't exceed the amount of your actual tax liability.

Higher Education Tax Credits

Parents can claim either of two credits for higher education: The American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). The AOTC can be used for up to four years. The Lifetime Learning Credit has no limit as long as you or your dependent child participates in an eligible degree program.

Student Loan Interest Deduction

Parents can deduct interest payments on certain student loans. The deduction can reduce the amount of taxable income and possibly lower your tax bill. Student loans must come from a qualified institution and your child must have been enrolled at least half-time in a degree program when the loans were taken out. Income limits apply based on filing status.

Self-Employed Health Insurance

Self-employed parents often must pay for their own and their family's health insurance. If you're self-employed, generally you can deduct 100% of the cost of health insurance premiums paid for children under the age of 27. This includes medical, dental and long-term care premiums, even if your adult child isn't a dependent. 

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“8 Money-Saving Tax Tips for Parents.” Intuit TurboTax. Intuit, Inc, 2016. Web. 27 April 2016. <https://turbotax.intuit.com/tax-tools/tax-tips/Family/8-Money-Saving-Tax-Tips-for-Parents/INF29134.html>