IRS Reminds Parents of Ten Tax Benefits 

Your kids can be helpful at tax time. That doesn’t mean they’ll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are 10 things the IRS wants parents to consider when filing their taxes this year.

1. Dependents: In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit: You may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit: You may be able to claim this credit if you pay someone to care for your child or children under age 13 so that you can work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit: The EITC is a tax benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. IRS Publication 596, Earned Income Credit, has more details.

5. Adoption Credit: You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. If you claim the adoption credit, you must file a paper tax return with required adoption-related documents.  For details, see the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with earned income: If your child has income earned from working, they may be required to file a tax return. For more information, see IRS Publication 501.

7. Children with investment income: Under certain circumstances a child’s investment income may be taxed at their parent’s tax rate. For more information, see IRS Publication 929, Tax Rules for Children and Dependents.

8. Higher education credits: Education tax credits can help offset the costs of higher education. The American Opportunity and the Lifetime Learning Credits are education credits that can reduce your federal income tax dollar-for-dollar. See IRS Publication 970, Tax Benefits for Education, for details.

9. Student loan interest: You may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions. For more information, see IRS Publication 970.

10. Self-employed health insurance deduction: If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child was not your dependent. For more information, see the IRS website.

This last one is a good tip to ask a Laughlin Associates business consultant about. As the leading incorporation services provider since 1972, we can help you as a small business owner to get the most out of your tax deductions. In fact, if you’re self-employed we can help you get as much 45% back on your taxes this time next year. Want to learn more? Call Laughlin Associates at 1-800-648-0966 or email lee@laughlinusa.com.

*Tips provided by IRS.gov

The state of Nevada is one of the best states to operate a business in.  Nevada has repeatedly been voted one of the most business-friendly states by CNN.com and Kiplinger’s. The advantages for small business owners are seemingly endless when you do business in the Reno-Tahoe area; this includes various tax benefits to entrepreneurs, minimal business regulations, and inexpensive commercial real estate. 

The Greater Reno-Tahoe area offers a very competitive tax climate.  Tax advantages in Nevada include:

-          No personal state income tax

-          No inventory tax

-          No estate and/or gift tax

As far as national rankings go, The Greater Reno-Tahoe area boasts tops in many categories.  The area has been named the #1 place to do business in America by Inc. Magazine.  As well as achieving a top-rank as one of the best places to raise a family, Nevada offers one of the friendliest environments for entrepreneurs and was named among the “top 7” best states to start a business in. 

Nevada also offers a host of business incentives including sales and use tax abatement, sales and use tax deferral and personal property tax abatement as well as a grant for training new employees.

Not only is the Reno-Tahoe area a great place to run a business it’s also a great place to live.  The area is close to many recreational locations such as Lake Tahoe and some of the best white-water rafting destinations in the country.

When you incorporate in Nevada you can be assured to have the best personal asset protection in the nation.  Nevada’s corporate veil is extremely hard to pierce as shown by only having been pierced twice in the last 30 years. 

If you need help incorporating your small business or maintaining your corporate records, Laughlin Associates can help.  During these tough economic times it’s a smart idea to stop looking for job opportunities and start making your own by opening a small business.

If you’ve just started a new business venture, have been in business for years and never incorporated, or thinking about getting something off the ground, Laughlin is your trusted resource for all of your small business needs. While we incorporate in all 50 states, we have specialized in Nevada companies for nearly 40 years.  

Have questions about incorporating in Nevada? Drop me a line at 1-800-648-0966 or rrees@laughlinusa.com.