| There is a lot to do when you have a family. Through | | | | You can contribute up to $2000 per year to an |
| the day-to-day endeavors of caring for your home, | | | | Educational Savings Account. While the contribution is |
| your spouse, and your children, tax issues can easily | | | | after-tax, the funds that are withdrawn are untaxed as |
| be relegated to the bottom of the list. So here is a little | | | | long as they are used for college education expenses. |
| advice you might find helpful to keep in mind in order to | | | | If your family's medical bills surpass 7.5% of your |
| make tax time less stressful in your household. | | | | Adjusted Gross Income, they are tax deductible. This |
| Save all of your receipts through the course of the | | | | is particularly helpful if you have a sick family member |
| year. Even if you are pretty sure that you won't get a | | | | or a recent newborn. |
| tax benefit from a purchase, save the receipt. Too | | | | If you run your own business, you might want to think |
| much is better than too few when it comes to tax | | | | about hiring one of your minor children. A minor can |
| receipts. Keep them in a special folder in a filing cabinet | | | | earn up to $5000 per year without being subject to |
| or desk drawer so your receipts are easy to find | | | | income tax. |
| when it is time to prepare your taxes. You can sort | | | | According to the IRS, 25% of families that qualify for |
| out which ones are applicable when you actually do | | | | the earned income tax credit do not apply for it. To |
| your filing. | | | | find out if your family qualifies for the EITC, go to the |
| Stay up on changes in the tax code. Some things that | | | | IRS website and find out. |
| happen in June or July can affect your taxes in April. | | | | The best way to avoid income tax problems is to be |
| This goes for all times of the year. Know about tax | | | | prepared. Review your financial status and accounts |
| changes when they happen. Don't wait until April 14 to | | | | periodically throughout the year. Sit down with your |
| catch up. | | | | spouse and compare opinions when making decisions |
| The college tax credit has been extended. If you have | | | | about deposits into IRAs, educational savings accounts, |
| children attending college, they are now eligible for a | | | | and so on. By making smart decisions about your |
| maximum credit of $2500, which can now be claimed | | | | investments, savings, and income during the year, you |
| for four years. | | | | can avoid confusion and trouble at tax time. |