Everyone's favorite time of the year has arrived... Tax season! JK. But as a parent, there are key tax benefits that could put more money back in your pocket this year. Over the next couple weeks, we will send a series of important emails about taxes that will help guide you.
Please remember that you should always consult a tax expert to make sure you are taking full advantage of the best opportunities.
💰 The Child Tax Credit
- Get up to $2,000 per child under 17 (with up to $1,700 refundable).
- Helps lower your tax bill or even increase your refund!
- Action: If you’re getting a tax refund, consider investing part of it into your child’s EarlyBird account to build their future wealth.
For more details about the Child Tax Credit and eligibility, visit the IRS website.
🎁 The Annual Gift Tax Exclusion
- You can gift up to $18,000 per child tax-free ($36,000 if gifting with a spouse).
- A smart way to invest in your child’s future while avoiding gift tax.
- Action: Encourage grandparents and family members to make a tax-free contribution to your child’s EarlyBird account!
For more details about the Annual Gift Tax and eligibility, visit the IRS website.
👶 The Child & Dependent Care Credit
- If you paid for child care, you could claim up to 35% of qualifying expenses (max $3,000 for one child, $6,000 for two or more).
- Helps offset daycare, babysitting, and after-school care costs.
- Action: If you’re saving on taxes with this credit, put some of those savings toward long-term investments for your child.
For more details about the Child & Dependent Care Credit and eligibility, visit the IRS website.
📄 Your Tax Documents Are Ready!
If you’ve made transactions through EarlyBird, your tax documents are now available in your account. Download them now to make filing easier.
Disclaimer: EarlyBird does not provide tax, legal, or accounting advice. This email is for informational purposes only and should not be relied upon as tax guidance. Please consult a qualified tax professional for advice regarding your specific situation.
This page contains general information and does not contain financial advice. All investments involve risk. Any hypothetical performance shown is for illustrative purposes only. Actual investment performance may be different for many reasons, including, but not limited to, market fluctuations, time horizon, taxes, and fees. Please consult a qualified financial advisor and/or tax professional for investment guidance.
