Tax Breaks for Parents: Childcare, Education, and More
Being a parent is expensive—but tax season can give you a break. From childcare to college tuition, the IRS offers a variety of credits and deductions that can help lighten the load. Here’s a rundown of what to look for in 2025.
🍼 1. Child Tax Credit (CTC)
Up to $2,000 per qualifying child under 17
Up to $1,700 may be refundable, even if you owe no tax
Income phaseouts begin at $200,000 (single) or $400,000 (married filing jointly)
🧒 2. Child and Dependent Care Credit
For parents who pay for childcare while working or job-hunting
Claim up to 35% of $3,000 in expenses for one child or $6,000 for two or more
Credit is non-refundable but can reduce what you owe
🎓 3. Education Credits
American Opportunity Credit: Up to $2,500 per student for the first four years of college
Lifetime Learning Credit: Up to $2,000 per return for qualified education expenses—no age or degree limits
🧾 4. Earned Income Tax Credit (EITC)
A major benefit for low- to moderate-income working families
Amount varies based on income and number of children (more kids = bigger credit)
Can result in a large refund, even if you owe no taxes
💳 5. 529 Plan Withdrawals (Tax-Free!)
Use for qualified education expenses—tuition, books, and even some K-12 costs
Earnings grow tax-free when used properly
🏡 6. Adoption Credit
Covers qualified adoption expenses—up to $15,950 per child in 2025
Non-refundable, but can be carried forward up to five years
