Any other 2017 tax benefits available for our child?

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PlayingLife
Posts: 305
Joined: Sun Dec 29, 2013 3:10 pm

Any other 2017 tax benefits available for our child?

Post by PlayingLife » Sun Feb 18, 2018 12:01 pm

Relatively new parents here who want to ensure we are not forgetting anything when we enter our taxes. Pretty straightforward return - no after tax investing or investment properties, and we do not own any businesses. Really it's just a joint return with two W2's, and itemizing deductions with the focus on property taxes and mortgage interest. Not much else.

My employer offers the Dependent Care Account, but in 2017 my contributions were limited to around $3600 due to where my income falls in line with company averages (I don't remember the exact explanation but it was something along these lines). We have since withdrawn the ~$3600 from the account. Our joint income is above the limit to receive the child tax credit.

I've historically used H&R Block for taxes and am about ready to submit 2017 taxes. Just wanted to check with BH's to ensure I'm not forgetting anything. Not sure if I can somehow make up the difference between the $3600 through my job and the annual $5000 limit...or if there is some other benefit I am unaware of. Thank you in advance for any comments.

harmony
Posts: 488
Joined: Sun Nov 24, 2013 1:35 am

Re: Any other 2017 tax benefits available for our child?

Post by harmony » Sun Feb 18, 2018 2:10 pm

Being a little older and thinking back to when we had our first child like you, I have to ask if you have contributed to a Roth or Traditional IRA. I missed a couple of years when our oldest was very young. IRAs were a new kind of investment back then and financial planning information wasn't as readily available as it is with the internet today. (That's an explanation but not a good excuse.) The IRA benefit can be stretched to a future generation, so it is invaluable for the possibility of future disability.

Hillview
Posts: 291
Joined: Fri Feb 02, 2018 7:27 am

Re: Any other 2017 tax benefits available for our child?

Post by Hillview » Sun Feb 18, 2018 2:57 pm

depending on your state there may be a state tax credit for a 529 plan but that would not be retroactive (so you could invest this year and get the deduction next year). Also for this year do you have a HSA available for health care (pre tax dollars fund this) -- that can come in handy especially when you have kids and visits to the doc with co-pays. Again not retroactive.

PlayingLife
Posts: 305
Joined: Sun Dec 29, 2013 3:10 pm

Re: Any other 2017 tax benefits available for our child?

Post by PlayingLife » Tue Feb 20, 2018 6:11 pm

Thanks for the comments here, much appreciated! Unfortunately/fortunately we are passed the income limit to contribute to a roth or trad ira...doesn't feel like we are beyond the limit though since we live in a HCOL area : ) The 401k's are maxed and we contribute $5K annually to the after-tax 529. We do contribute heavily to an HSA every year too.

Basically I guess since I was blocked from contributing the $5K limit via my job in the Dependent Care account (for Daycare expenses), I was wondering if there was a way to file and make up the difference between $3600 and $5K.

mega317
Posts: 2196
Joined: Tue Apr 19, 2016 10:55 am

Re: Any other 2017 tax benefits available for our child?

Post by mega317 » Tue Feb 20, 2018 6:28 pm

You should look at form 2441, but I think the $3600 will make you ineligible for the child and dependent care credit.

mega317
Posts: 2196
Joined: Tue Apr 19, 2016 10:55 am

Re: Any other 2017 tax benefits available for our child?

Post by mega317 » Tue Feb 20, 2018 6:30 pm

One of the greatest tax benefits of children I have found (other than the additional exemption which is going away) is donating all the junk you buy (or are gifted) and use once.

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