Exemptions cut your taxable income.  Taxpayers can claim an exemption for themselves, their spouse (if filing jointly), and their dependents.  There are rules about claiming exemptions and dependents.  If you claim a dependent on your tax return, that person cannot claim an exemption for themselves on their tax return.  Each exemption usually gives taxpayers a $4000 deduction.  The $4000 per exemption is subject to income limits.

In addition to claiming children as exemptions, there are other tax savers for parents.  Parents may be able to claim a $1000 Child Tax Credit for children under the age of 17. Working parents or parents who are looking for work may be able to claim a Child and Dependent Care Credit.  Taxpayers who worked and earned less than $53,267 in 2015, can get up to $6242 in Earned Income Tax Credit.  Tax credits for adoption and education are also available for parents.

If you file your own return, free and low cost on-line tax filing is available on this website.