Did you Know...

1. The Child Credit is $1,000 per child age 16 and younger. This credit is refundable if the amount of taxes you owe is less than the amount of your credit.
    

2. The Child Care Credit is $3000 for one child or $6000 for 2 or more children in day care.
    

3. The Child Care Credit is actually a Dependent Care Credit. You can count the day care / household services you pay for a dependent of any age (including a spouse or a parent) who is physically or mentally incapable of self-care at any time during the year.
    

4. If you and your siblings together support your parent, IRS Form 2120 will allow one of you to claim the dependent exemption even  though no one paid more than half your parent's support.
    

5. If your child is a full-time student for 5 months of the year and is under 24 years old, he (she) may still be your dependent.
    

6. The tuition your college-bound child paid is a write-off on YOUR tax return as long as the child is your dependent.
    

7. Generally, your dependent must live with you. Your parent is the exception to that rule. If you provide more than half the support of your parent, you may claim the exemption even though your parent does not live with you.
    

8. If you are supporting a disabled person, that person may qualify you for the earned income credit.
    

9. If you are disabled or a full-time student, you can claim child care paid for the months you are going to school or are totally disabled.
    

10. You can deduct up to $2500 of the interest paid on your student loan even if you weren't the one who made the payments as long as you are legally responsible for the debt  (Phase-out rules apply)
     

11. If you are taking a course at any accredited school, you may be able to take a credit on your return for the tuition you paid.
     

12. You can use your IRA for the down payment on a house (up to $10,000 for a first-time homeowner), for college education costs, for excessive health expenses and other hardships. You will owe tax on the withdrawn amount, but no penalty for early withdrawal. Caution! This is not true for your 401(k) money!
     

13. If you are self-employed, 100% of your health insurance premium is a tax deduction.
     

14. If you will owe taxes, don't wait until you have the money to pay to file your tax return.  The failure to file on time penalty is 5% per month!  An extension gives you more time to file the return, but not to pay what you owe.  You owe interest at 0.5% per month on the tax you owe beginning on April 15th and continuing until the tax is paid in full, no matter when you file the return.
     

15. You can pay the balance due on your return as well as estimated taxes with your credit card.
     

16. According to IRS statistics, the top 1% of taxpayers earn $389,000 or more and pay 40% of all income tax collected. The top 10% earn $109,000 or more and pay 71% of income taxes. 50% of taxpayes earn $32,000 or more and pay 97% of all imcome tax. The bottom 50% earn less than $32,000 and pay only 3% of all income tax collected, and 47% of them pay nothing at all.  Check out Our Tax System Explained: Bar Stool Economics on our LOL page for a funny yet accurate take on this.