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Tax benefits associated with transferring assets to children include: • Shifting taxable income and gains on asset sales to the child’s lower rate. • Removing the asset, along with any future appreciation, from the parents’ taxable estate. However, a portion of the unearned income of children under age 18 and many who are age 18
Did you pay someone to care for a child, spouse, or dependent last year? If so, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. Below are the top 10 things the IRS wants you to know about claiming a credit for child and dependent care
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