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Claiming a son or daughter or other dependent can lower your tax bill in 2025 in four key ways. You don’t want to miss out on these important tax-saving opportunities. After all, you’ve earned them by supporting a dependent throughout the tax year.
“Claiming a dependent isn’t just about tax savings—it’s about maximizing your financial opportunities. Whether a taxpayer qualifies for child-related tax credits, tax-deductible expenses, or a lower tax bracket, strategic tax planning can alter your tax bill and boost your refund,” says Joanne Burke, a certified public accountant and founder of Birch Street Financial Advisors.
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Key Takeaways
- By claiming a dependent, you may be able to change your filing status to head of household, which can result in a lower tax bracket and a higher standard deduction.
- If your dependents are children under the age of 17, you may qualify for the Child Tax Credit.
- If your dependents are students and you are paying for their education expenses, you may qualify for education tax credits such as the American Opportunity Tax Credit and the Lifetime Learning Credit.
- Choosing to itemize your deductions may lower your tax bill, especially if you are paying the medical expenses of one of your dependents.
It’s easy to claim a dependent on your tax return. You’ll just need to follow the simple rules for dependents laid out by the Internal Revenue Service. Once you know you qualify, you can go about scooping up tax savings.
Change Your Filing Status
By claiming a dependent, you may be able to change your filing status to head of household.1 Just this one change can give you a lower tax bracket and a higher standard deduction.2
“If you’re unmarried and supporting a dependent, you may qualify for head of household status. Some of the highlights include a preferential tax bracket and a higher standard deduction,” Burke says.
“For example, if you’re a single parent making $80k in household income with two dependent children, you can qualify for head of household status vs. single, which could save an additional $2,500+ in taxes due to lower tax brackets.”
Get the Child Tax Credit
If you have children younger than 17, you may qualify for the Child Tax Credit.3
“The Child Tax Credit (CTC) is a tax credit for eligible families with dependent children under age 17 at the end of the tax year. Taking the credit can help lower your tax bill dollar-for-dollar—and depending on how much you owe, it may take your taxes owed down to zero,” says Alison Flores, manager with The Tax Institute at H&R Block.
But first, you’ll need to meet the requirements.
“Like many tax benefits, you must meet certain requirements before you can claim the Child Tax Credit. These include details about the dependent child, the relationship between you and the child, and your income,” Flores says.
Get Education-Related Tax Benefits
If you are supporting your dependent as a student, you may qualify for tax credits for the qualified education expenses that you’re making.
“By claiming your dependent, you may be eligible for the American Opportunity Tax Credit, up to $2,500 per student, or the Lifetime Learning Credit, up to $2,000 per return,” Burke says.45
Itemize Deductions
This is an important step to take if your dependent has a number of medical expenses for which you are paying.
“When claiming a dependent, you can also claim their medical expenses as an itemized deduction. This can be a dramatic tax savings when your elderly parent can be claimed as your dependent and they have large medical expenses you pay on their behalf. Their medical expenses can be added to yours,” Burke says.
The Bottom Line
If supporting children and other relatives is a big part of your life, you’ll want to cash in at tax time. Claiming a dependent can drastically lower your tax bill. So don’t hesitate to claim every benefit for which you qualify. Even changing your filing status to head of household can have a big effect on your tax bill.
Reach out for tax credits, such as child and education credits, and check if itemizing your deductions will help to lower your tax bill. All these things can slash a big tax bill to a small one.
Article Sources
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- Internal Revenue Service. “Publication 501, Dependents, Standard Deduction, and Filing Information.” Page 8.
- Internal Revenue Service. “Rev. Proc. 2024-40.” Pages 5-6, 12.
- Internal Revenue Service. “Child Tax Credit.”
- Internal Revenue Service. “American Opportunity Tax Credit.”
- Internal Revenue Service. “Lifetime Learning Credit.”