Raising a family today comes with rising financial demands, but fortunately, the IRS offers a variety of family tax credits and deductions designed to help ease that burden. These include tax breaks for children, education expenses, adoption, and even unique planning strategies. However, many families miss out on these opportunities due to misinformation or incomplete tax advice.
Here’s a detailed guide to help your family take full advantage of available tax benefits in 2024.
Start with the Standard Deduction
Before exploring itemized deductions, it’s important to understand the standard deduction for 2024. Most taxpayers use this automatic deduction, which reduces taxable income based on filing status:
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Single / Married Filing Separately: $14,600
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Married Filing Jointly / Qualifying Surviving Spouse: $29,200
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Head of Household: $21,900
Your itemized deductions must exceed these amounts to provide additional tax savings.
Child-Related Tax Credits
Child Tax Credit (CTC)
The Child Tax Credit provides up to $2,000 per qualifying child under age 17. Of that amount, up to $1,700 may be refundable in 2024 via the Additional Child Tax Credit.
Credit for Other Dependents
If your dependents don’t qualify for the CTC—such as older children, college students, or elderly parents—you may be eligible for a nonrefundable Credit for Other Dependents of up to $500 per dependent.
Income phaseouts apply:
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Married Filing Jointly: Begins at $400,000
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All Others: Begins at $200,000
Adoption Tax Credit
Families who finalize an adoption in 2024 may claim a nonrefundable credit of up to $16,810 for qualified expenses such as:
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Legal and court fees
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Adoption agency fees
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Travel costs related to the adoption
Income limits:
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Phaseout begins: $252,150
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Completely phased out: $292,150
Unused credits can be carried forward up to five years. Note: This credit does not apply to adopting a spouse’s child.
Education Tax Benefits
American Opportunity Tax Credit (AOTC)
Designed for students in their first four years of college, the AOTC is worth up to $2,500 per eligible student:
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100% of the first $2,000 in qualified education expenses
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25% of the next $2,000
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Partially refundable
Income limits:
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Phaseout begins at $80,000 (Single) / $160,000 (Married Filing Jointly)
Lifetime Learning Credit (LLC)
The LLC offers up to $2,000 per return (not per student) and applies to any level of postsecondary education.
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20% of up to $10,000 in qualified expenses
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Nonrefundable
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Same income limits as AOTC
Important: You cannot claim both the AOTC and LLC for the same student in the same tax year.
Student Loan Interest Deduction
If you paid interest on qualified student loans in 2024, you may deduct up to $2,500, even if you don’t itemize.
Phaseout ranges:
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Single: Begins at $80,000, ends at $95,000
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Married Filing Jointly: Begins at $165,000, ends at $195,000
Medical and Dental Expense Deductions
Families with significant out-of-pocket healthcare costs may benefit from itemizing deductions.
You may deduct unreimbursed medical and dental expenses that exceed 7.5% of your AGI, including:
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Hospital visits and surgeries
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Dental procedures
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Long-term treatments or therapies
To benefit, your total itemized deductions must exceed the standard deduction for your filing status.
Annual Inflation Adjustments
Each year, the IRS adjusts standard deduction thresholds and tax brackets for inflation. In 2025, expect modest increases that slightly reduce the amount of income taxed at higher rates.
Other Smart Family Tax Strategies
Hire Your Children in Your Business
If you own a business, consider employing your children. Wages paid to children under age 18 are:
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Deductible as a business expense
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Often tax-free to the child if earnings stay under $14,600 (the standard deduction)
This strategy can lower your business’s taxable income while providing tax-free income to your child.
Purchase a Second Home in a College Town
Buying a home in your child’s college town may offer added tax advantages. If you itemize deductions, you may be able to deduct:
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Mortgage interest
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Property taxes
To qualify, the home must meet IRS requirements and be justified for personal or rental use—not just for the child’s benefit.
Let the Experts at Singh and Associates, LLP Help
Navigating family tax credits and deductions can be overwhelming, especially with evolving IRS rules and income limits. At Singh and Associates, LLP, we specialize in helping families maximize every available tax benefit.
Don’t leave money on the table—schedule a consultation today to ensure your family gets the most from this year’s tax return.
