Prepare now for potential income tax hits

As your children grow older, you can easily be surprised by a larger tax bill. To help plan for the tax impact of these changes, consider these tax implications as your dependent children age.

A higher tax bill in your future

At age 13: Loss of your Dependent Care Credit. If your children are in daycare and you offset some of this cost with the Dependent Care Credit you will lose this benefit when they reach age 13. The impact: up to $1,050 for one qualifying person ($2,100 for two or more qualifying persons).

At age 17: Loss of Child Tax Credit. In 2026, the Child Tax Credit is $2,200 for children under the age of 17.

At age 19 (24 if a full-time student): Loss of the Earned Income Tax Credit (EITC). The EITC pays a potential credit worth up to $8,231 for people with three or more qualifying children. Children stop being counted when they turn 19, or when they are 24 if they are full-time students.

At age 18 thru 24 when dependency ends. This one will vary by state and by situation. At some point your dependents are no longer your dependents. This will change the standard deduction on their tax return as it would have been limited as a dependent on your tax return. Be prepared for when this happens. It can impact the use of kiddie tax rules, and any related deductions.

What to do

Many of the child-related credits and deductions are meant to offset the cost of raising a child. Prepare now for the inevitable change in your tax situation that occurs when they go away. Here are some ideas:

• Know the age triggers. Note the tax years that these changes will occur. If a child is approaching one of these key years, adjust your spending to save a little more during the year to account for the change.
• Revise your withholdings. At the beginning of each key year, look at adjusting your withholdings on your paycheck to ease the potential tax burden.
• Conduct a tax forecast. Understand what the true impact of the change might be. You may find the tax hit less of a burden than you think. If you need help planning ahead, don’t hesitate to call.

Category: Planning	Published: 08/14/2026