J.K. Lasser's 1001 Deductions and Tax Breaks 2023, 3rd Edition

CHAPTER 1You and Your Family

• Marital Status

  Dependents

  Qualifying Child

  Qualifying Relative

  Child Tax Credit

  Earned Income Credit

  Dependent Care Expenses

  Adoption Costs

  Foster Care

  Child Support

  Alimony

  ABLE Accounts

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

The nature of families is changing, and taxes have specific rules for them. Do the old clichés still ring true? Can two still live as cheaply as one? Are things really cheaper by the dozen? For tax purposes, there may be a penalty or bonus for being married versus single. And there are certain tax breaks for having a family.

This chapter explains family‐related tax benefits, such as tax credits related to your children and the consequences of marital dissolutions. For more information on these topics, see IRS Publication 501, Dependents, Standard Deduction, and Filing Information; IRS Publication 503, Child and Dependent Care Expenses; IRS Publication 504, Divorced or Separated Individuals; IRS Publication 596, Earned Income Credit; and IRS Publication 972, Child Tax Credit.

Marital Status

Whether you are married or single has a significant impact on your taxes. In some cases, being married results in a “marriage bonus,” which means effectively ...