Hidden Tax Breaks Every Parent Should Know About

Being a parent comes with a lot of surprises — from sleepless nights to never-ending snack runs — but did you know it can also come with a few pleasant surprises when tax time rolls around? Many parents miss out on valuable credits and deductions simply because they don’t know they exist.

At Progressive Tax Services, we believe your hard work deserves every dollar you’ve earned. Here are some hidden tax breaks every parent should know about to keep more money in your pocket this year.

👶🏼 1. Child Tax Credit (CTC)

One of the biggest benefits for parents, the Child Tax Credit can provide up to $2,000 per qualifying child under age 17. Even better — up to $1,600 of that amount may be refundable, meaning it can boost your refund even if you don’t owe taxes.

💡 Tip: Make sure your child has a valid Social Security Number and that they lived with you for more than half the year to qualify.

🧸 2. Child and Dependent Care Credit

If you paid for daycare, after-school care, summer camp, or even a babysitter so you could work or look for work, this credit can help offset those expenses.

You could claim up to 35% of qualifying childcare costs, depending on your income.

💡 Tip: Keep receipts and your provider’s tax ID handy — you’ll need both when filing.

🎓 3. Education Tax Credits

If you’re paying for your child’s college expenses, don’t skip the education credits!

• American Opportunity Credit: Up to $2,500 per eligible student for the first four years of college.

• Lifetime Learning Credit: Up to $2,000 per tax return, even if the student is part-time or pursuing career development courses.

💡 Tip: Only one credit can be claimed per student per year — talk to your tax pro to decide which one saves you more.

🩺 4. Medical Expense Deductions

Families often underestimate how quickly medical expenses add up — braces, glasses, therapy, and specialist visits can all count toward deductions.

If your out-of-pocket medical costs exceed 7.5% of your adjusted gross income, you can deduct the amount over that threshold.

💡Tip: Save receipts and statements throughout the year; small bills add up fast!

🏠 5. Earned Income Tax Credit (EITC)

This credit is designed to boost working families with low to moderate income, and the refund can be substantial — sometimes thousands of dollars.

The amount depends on your income, filing status, and number of qualifying children.

💡Tip: Even if your income is modest, you may still qualify. Many families miss out simply because they don’t file a return

💴 6. Dependent Care Flexible Spending Account (FSA)

If your employer offers one, a Dependent Care FSA allows you to set aside up to $5,000 in pre-tax dollars for childcare expenses.

That means you can reduce your taxable income while paying for necessary care.

💡Tip: This one requires planning — funds must be used by year-end, so budget carefully.

🌟 Final Thoughts

Tax season doesn’t have to be stressful — especially when you know where to find hidden savings. From child care credits to education deductions, these family-focused tax breaks can make a real difference in your refund.

At Progressive Tax Services, we specialize in helping families and individuals file with confidence. Whether you’re a new parent, a busy caregiver, or sending your first child off to college, we’ll help you uncover every credit you deserve.

📅 Schedule your appointment today — in person or virtually — and let’s make sure you don’t leave money on the table this tax season.

🔗 Book Your Tax Appointment Now

📍Progressive Tax Services | Sister Company of R&R and Associates, Downtown Dallas