We all know that supporting a dependent can cost a bundle, but here are four things you may not know about dependents that will help you at tax-time.
Related and non-related dependents save you money. Even though you may be shelling out thousands for food, a place to live, and care for your dependent, the IRS gives you tax breaks for your dependent child, relative, or non-relative in the form of tax deductions and tax credits. Although tax credits reduce your tax liability dollar for dollar and tax deductions reduce your taxable income, both tax credits and tax deductions can save you money on your taxes and boost your tax refund.
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