5 Biggest Tax Breaks For 2022

Good news for some Americans.

With inflation rampant across America, the cost of raising children in America is harder than ever. Luckily for parents, there are some big tax breaks that they can take advantage of if they want to save a little extra cash this tax season.

According to Fox, here are some of the biggest tax breaks parents can take advantage of:

Earned Income Tax Credit (EITC) – this tax break is not just for parents but anyone living in poverty. Parents however do earn a higher tax credit if they apply.

Child and Dependent Care Tax Credit – If you pay for childcare while you are working or looking for work you can take advantage of this tax credit as well.

Child Tax Credit – If you already receiving this tax credit between the months of July and December of 2021, you should still check to see if there is more you can receive which there is a high probability of.

529 state tax plans – This plan is designed to help you save for your child’s educational expenses. This plan allows you to prepay credits at a college or university for future use or save for a child’s elementary, secondary, college, or trade school education.

American Opportunity Tax Credit (AOTC) – If your modified gross income (MAGI) is below $160,000 if you are married or your are single and make less than $80,000, this plan can be applied to you. This tax break allows you to claim qualified expenses that you paid for out of pocket during your child’s first four years of college, university, or trade school.

If you believe any of these tax breaks apply to you, you should research further into these tax breaks. Good luck!