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10:48AM

Tax Tip: It Pays to Be a Parent During Tax Season

iStock/ThinkstockAll those long nights of lost sleep will finally pay off for moms and dads when it comes time to filing their taxes.

New York tax accountant Janice Hayman says kids can be helpful, "especially if they're young."

Each child you claim as a dependant earns you a tax credit of up to $1,000. That's called the Child Tax Credit -- and there are even more savings if you've been paying for child care.

"If they're under age 13 and both parents are working, there is a child and dependent care credit if you are spending $3,000 per child with after school or other dependant care expenses," Hayman explains.  

You can also claim an in-law or your own mother or father if you're responsible for their housing.

"If you do have an aging parent living with you and they are your dependent, there can be some variety of tax savings, including if they have medical deductions," she says.

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