Tax Time and the Family—How Can I Get the Most Out of My Taxes?

Learn what you can do to get some relief from your tax burden.

13:35 30 March 2013

If you have a family, chances are that you probably file a tax return in hopes of getting money back each year from tax credits.You have children, a spouse who works, or you both work. What should you look out for, and what will help you out during tax time? Read this article to get information pertinent to your family situation.

 

The first thing all families should be aware of is that if only one of you works the tax system makes you pay money. Worse yet, they can reduce the amount you get back during tax time if you do get money back.

 

The government is unclear about what the maximum amount of a married couple’s allowance actually is; however, it clearly states the minimum married couples allowance is £2,160.

 

This seems unusually harsh, especially in comparison to the single individual tax allowance of £8,105. Perhaps this is because families get other benefits and singles do not, with the exception of single parents.

 

There a few tax credits that may be able to help you.  Make sure you select the child tax crediton your tax form. This credit gives you a tax break for your children. This tax credit encompasses child care, disability of the child or the parent,anda severely disabled child credit limitas well. The child care credit actually comes from the working tax credit, so be sure to file for both of these credits.  

 

The amounts you can get back, or reduce your debt to the government, vary by which of these tax credits your family utilizes. If you only have a child with no disabilities or child care because you have a stay at home parent, then the amount is £3,235. The maximum for both the working credit and child credit is £7,375. This does not count the weekly reimbursements for child care which is £300.