Tax Tips for Parents: 2025 Credits and Deductions You Shouldn’t Miss

Raising kids is awesome, but it sure can be expensive! Between daycare, school stuff, doctor visits, and daily bills, saving money anywhere you can feel like a win. Luckily, there are some great tax breaks for parents that can help keep more cash in your pocket.

We help families every year find all the tax credits and deductions they qualify for. Here are some key ones for 2025 you don’t want to skip:

Child Tax Credit (CTC)

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  Get up to $2,200 per child

• Part of the credit might be refundable (meaning you get it even if you owe little or no tax).

• Kids need to be under 17 and have a Social Security number

• Income limits apply, so higher earners may get less.

Make sure you report everything correctly—mistakes can cost you the credit.

Child and Dependent Care Credit

• Covers daycare, preschool, before/after school programs, summer day camps, and in-home care.

• Credit is based on your childcare costs and income—don’t forget to get the provider’s info!

  
  

Earned Income Tax Credit (EITC)

• Refundable credit that can lead to a bigger refund, even if you don’t owe tax.

• The more qualifying kids you have, the bigger the credit.

• Check if you qualify each year—income changes can make a difference!

Education Tax Breaks

• American Opportunity Tax Credit: Up to $2,500 per college student (for the first 4 years).

• Lifetime Learning Credit: Up to $2,000 per return, for all kinds of college or career courses.

• 529 Plans: Money grows tax-free, and withdrawals for education aren’t taxed. Some states give extra breaks for contributions.

  
  

  Pick the best education credit for your situation—you can’t use both at once.

Health Savings

• Deduct medical expenses if they’re high enough

• Contribute to an HSA—money goes in tax-free and can be spent tax-free on health needs

• You can still contribute for the 2025 tax year until the filing deadline.

Head of Household

• Single parents or unmarried folks supporting a child might qualify

• Gets you a bigger standard deduction and lower tax rates than single filing

  
  

Bottom line: These credits and deductions can make a real difference for families. Don’t miss out—double-check what you qualify for!

Remember the more information you acquire today the more prepared you are for the future!