• File correctly by following a few tips.TAX TIME image by brelsbil from Fotolia.com
  
  Know how to file taxes correctly so that you can be honest about your child's income and receive the maximum amount of money in return for having children. These factors are important because children need to learn the significance of filing taxes from a young age. If you understand how to file your taxes, you can educate your kids about how taxes really work.
  
  

What Are The Age Limits For Claiming Dependents?

• Parents of adult children who have recently moved home may wonder whether they can still claim them. While the qualifying child test holds that your dependent must be under age 24, you can claim any qualifying relative on your taxes. If you have a child over age 24 living in your household, he must pass certain eligibility requirements for you to claim him. For instance, he must be a United States, Mexican, or Canadian citizen. You must provide over half of his support, which means that you pay the majority of his bills. Also, be sure that he makes less than the personal exemption amount, which was $3,650 in 2009 and 2010.
  
  

What Is The Hope Credit?

• If you have children who are in college, pay close attention to the credits that you can claim. Several credits exist that you can use if you, your spouse, or children are in college at least half time. For instance, you can claim the Hope, Lifetime, or American Opportunity tax credits. The Hope Credit is for students in their first or second year of college, while the American Opportunity credit allows you to claim it if someone in your family is in the first four years of college. You are eligible if you pay for the tuition and other school related expenses for your child.
  
  

Do Kids File Taxes Too?

• All citizens including children must file taxes if they meet certain income guidelines. This means you should keep track of your child's income from interest on an account, child modeling, and mowing yards. He must file if his unearned income, which includes the interest on an account, was over $800. He also must file if his earned income, which includes wages paid at a job, was over $5,000. The last reason he must file is if his gross income, which is the income before taking out deductions and taxes, was over $800 or the earned income plus $250.