Using tax-free reliefs and benefits

Use all the tax reliefs and tax-free benefits available to you as far as practicable. Some, such as the annual personal allowance and age allowances, are given automatically, but others need to be claimed, for example child tax credits and child benefit. If you paid someone to care for your dependent under age 13 or your disabled dependent or spouse so that you could work or look for work, you may be able to claim the Child and Dependent Care Credit on your tax return.

A tax return usually must be filed for a child whose income included investment income, such as interest and dividends, and totals more than $750. Your child pays no tax on the first $750 of unearned income and pays tax on the next $750 at his or her own (presumably 10%) tax rate. You cannot deduct child support payments on your tax return. Child support payments are neither taxable to the recipient on the recipient's tax return, nor tax deductible by the payer on the payer's tax return. And you don't have to report child support payments received on your tax return. Child support payments are neither taxable to the recipient on his/her tax return, nor tax deductible by the payer on his/her tax return.