11 Tax Breaks Parents Can Get for Claiming Kids on Taxes

Does the thought of doing your taxes on top of caring for your kids make your head spin?

Take a deep breath: We found 11 tax breaks for parents.

Whether your children are swaddled newborns or seeking college degrees – whether you’re single, married with kids or adopted this year – you may be eligible to get some money back on tax day.

11 Benefits and Tax Credits for Parents

Here are the top tax credits and deductions for parents to keep in mind.

1. Out-of-Pocket Medical Expenses Related to Pregnancy

Technically, any year you have large medical expenses you could potentially deduct them on your tax return. But when you have a baby, the likelihood of having massive medical expenses goes up. Here are the pregnancy- and childbirth-related expenses you might be able to deduct: 

• Health insurance premiums for anyone on your tax return – including baby (though you will have to be careful about this one if you have an ACA plan and/or are self-employed)
• OBGYN expenses paid out-of-pocket
• Physical therapy expenses paid out-of-pocket
• Out-of-pocket costs associated with bloodwork and labs
• Cost of diagnostic tests (like ultrasounds and pregnancy tests) paid out-of-pocket
• Hospital bills not covered by insurance
• Travel and lodging expenses if you had to travel to receive adequate medical care
• Breast pumps and any lactation aids that weren’t paid for by insurance

After you’ve added up all your expenses, you’ll then deduct 7.5% of your adjusted gross income (AGI). Whatever’s left is what you’re allowed to deduct. 

The kicker is that since the Tax Cuts and Jobs Act of 2017, the standard deduction has been quite high. Here are the numbers for the 2024 tax year: 

• If you’re married filing jointly, the standard deduction will be $29,200. 
• If you’re not married, but you’re claiming the child, it will be $21,900 under the head-of-household filing status. 
• If you’re not married and the other parent is claiming the child, you’ll qualify for the single taxpayer standard deduction of $14,600. 

That means for this itemized deduction to be worth it, your total medical expenses – after you subtract that 7.5% of your AGI – and other itemized deductions will need to be more than that standard deduction. 

For a lot of households in a normal year, taking the standard deduction is more advantageous. But during a year in which you’ve been pregnant and/or given birth, it’s worth running the numbers, especially if you found yourself paying a lot of money out-of-pocket.

2. Child Tax Credit

As soon as your child is born, you’re eligible for the Child Tax Credit, which reduces your tax burden by up to $2,000 for every child under the age of 17, depending on your income.

This might seem obvious, but it’s important to note: Even if your child is born on Dec. 31, you can still claim them for that year.

One thing to note about this credit is that it’s not refundable. It can get your tax burden down to $0, but won’t put money back in your pocket. For that, you’ll need the Additional Child Tax Credit.

3. Additional Child Tax Credit

Let’s say you have two kids and qualify for $4,000 total on the Child Tax Credit. But your tax burden is only $600. What of the remaining $3,400 in credit? 

Well, up to $1,700 per child can be refunded with the Additional Child Tax Credit. That means you’d get the extra $3,400 back in your pocket.

4. Adoption Tax Credit

The adoption process is notorious for being lengthy and expensive. The Adoption Tax Credit is worth up to $16,810 per child to help you alleviate that financial strain. 

This credit covers adoption fees, court costs, attorney fees, travel expenses and other related expenses. The $16,810 max accounts for the costs of the entire adoption – even if it was split over multiple years. So if you claimed $4,000 in 2023, you’d only be able to claim up to $12,810 for the 2024 tax year for the same adoption.

5. Earned Income Tax Credit

If you earned income last year but didn’t exceed certain thresholds, you may qualify for the Earned Income Tax Credit, which can significantly reduce your tax bill and even get you a refund.

The income limits depend on your filing status and how many children you have. For example, if you’re filing as single or head-of-household and have one qualifying child, you must have earned less than $49,084. If you’re filing jointly with your spouse and have three qualifying children, you must have earned less than $66,819.

The maximum amounts of credit vary slightly each year, and will vary depending on your income. Earning less doesn’t necessarily mean you get more – this tax credit operates on a bell curve. For the 2024 tax year, the maximum credit for the EIC will be:

• $7,830 for three or more qualifying children
• $6,960 with two qualifying children
• $4,213 with one qualifying child

Note: You can also qualify for the Earned Income Tax Credit without having a child.

6. Child Care Tax Credit

The cost for center-based daycare for one child can range anywhere between $230 per week for a family care center to $321 per week for a daycare or child care center, according to a 2024 survey by Care.com.

If you’re paying for child care, you may be able to get a chunk of that back on your taxes.

If your child is younger than 13 years old and you pay for child care while you’re either working or looking for work, you qualify for the Child and Dependent Care Tax Credit. According to the IRS, the amount of the credit can be 20% to 35% of your actual expenses depending on your income.

In 2024, the amount of expenses you can use to calculate the credit can be no more than $3,000 for one qualifying individual and no more than $6,000 for two or more qualifying individuals.

7. Head-of-Household Status

If you’re single and have a child, don’t overlook this crucial item: your filing status.

If you file as a head-of-household, you’re automatically eligible for a lower tax rate (and higher standard deduction) than if you file as single.

To be considered the head of household, you must:

• Be unmarried or considered unmarried on Dec. 31.
• Contribute more than 50% of the financial support of the household.
• Have a dependent who lives with you for more than six months of the year.

8. American Opportunity Tax Credit

During the first four years of your child’s college education, you can claim up to $2,500 for tuition and related expenses under the American Opportunity Tax Credit. If this would bring your tax burden down to $0, you can get up to 40% of this credit refunded to you, up to a max of $1,000.

Your child must attend college at least part time, and the credit can be prorated depending on your income. The income threshold for individual parents to qualify at all is $90,000; married couples must earn no more than $180,000.

9. Lifetime Learning Credit

Unlike the American Opportunity Tax Credit, there is no limit to the number of times you can claim the Lifetime Learning Credit for education costs to lower your tax bill. You can get up to $2,000 in credit for expenses like tuition – even if it’s not for a degree-earning program – but it only applies as a deduction. Under no circumstances can you get any portion of it refunded to you.

To qualify, your modified adjusted gross income must be less than $90,000 (or $180,000 if you’re filing jointly with your spouse).

Note: You can’t claim the AOTC and the LLC for the same person in a single year. Also, the AOTC is per student, while the LLC is per family.

10. State Tax Credits for Parents With Kids in Elementary or High School

Some states offer benefits for certain items or activities during the school year.

In Arizona, for example, if your kids attend public school, you’re eligible for a tax credit for any fees paid directly to the school district for extracurricular activities, including sports equipment or uniforms. You can even qualify for the credit if you spent money on their SAT/ACT tests or prep classes.

While it won’t affect your federal return, you should check to see if your state offers any tax credits, before filing your state taxes.

11. State Tax Deductions for Contributions to Your Disabled Child’s ABLE Account

If you have a child who was disabled prior to the age of 26, they qualify for an ABLE account. These accounts allow them to invest and shelter emergency savings from asset tests for programs like SSI and Medicaid. 

If you contributed to your child’s ABLE account this year, your state may offer you a state tax deduction. For example, Pennsylvania and Mississippi allow you to deduct 100% of your contributions on your state tax return dollar-for-dollar.

Other Parent-Child Tax Items to Consider

Ask yourself two more questions before filing your return, putting up your feet and enjoying a well-deserved break.

Which Parent Should Claim the Child?

A tricky part of being separated or divorced is figuring out who is supposed to claim the child on their tax return.

To make the call, the IRS typically looks at where the child sleeps for more than half the year, but there are some special exemptions as to who can claim the child and when.

This IRS chart answers a variety of questions you might have.

Does Your Child Work?

If your child has a job, make sure they file their own tax return.

Teens who work while in school usually don’t make enough money to have a liability. So, even though their employers have likely withheld taxes throughout the year, they’ll get them back in a refund check, which is a nice incentive.

Plus, it’s a great way to continue teaching your kids about money.

Contributor Michele Becker is a Boston-based writer who specializes in food, as well as Italian travel and history. Brynne Conroy contributed to this report.