Cost of raising a child

Raising a child is a tough work; anyone who ever raised a kid, or is still doing so, will agree to this statement. Since children haven’t had their senses and mentality fully developed yet, some adults find it difficult to communicate with them and effectively understand them from a neutral point of view. This leads to problems to both the growing child and its parents, since this lack of understanding can cause serious bonding issues in the future. Nonetheless, there is a lot to do in order to raise a child. While dedication and determination are the major elements needed, one must ensure proper handling of the costs. Like everything else, raising a child involves money; and usually more than one would expect. That burden can be lessened very slightly through your tax refunds.

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Statistical reports

Determined by an official survey hosted in the UK, it has been found out that an approximate amount of $342k is required to raise a child from birth to 21 years of age. In the United States, however, this cost is over $94k to raise children from birth to 18 years of age. The drastic difference in cost is noticeable in these developed countries, and especially considering the US’s case, $3900 is the tax exemption cost per child. The tax credit, similarly, is $1000.

For developing countries though, the case is rather unfortunate. Since people from most developing countries barely live on $2 a day, it is easy to see how powerful poverty is in these places. In fact, over half the children in the world live in poverty, which means there simply isn’t enough money to raise a kid properly, especially given the sad living conditions.

The exact cost, however, would be $900 to raise a child per year, and a little over $16k to raise the kid to 17. The exact calculations become quite difficult to put into numbers, since a lot of developing countries’ families do not have a steady source of income. Some resort to trading to get necessary the goods, or to sell off their own crops and produces. All in all, the cost of raising a child in developing and developed countries is frighteningly contrasting.

Income tax when raising someone else’s child in the US

Counting tax refunds when taking care of a child can be quite a complicated issue if one is not aware of the legalities involved. For example, if you are raising someone else’s kids and getting money for it, be it as a professional babysitter or a kindergarten manager, there are certain things that does not count as income as far as your taxes are concerned.

While the most obvious of these factors are the costs of the caring process and the difficulty of such, other details, such as the money received from looking after ill or handicapped children does not get included here as well. Also, if the child is adopted and the adopted parents are paying for the child’s wellbeing, then tax is not included in the income. So when pulling requests on tax refunds, keep in mind that these additional costs will not be counted as money you earn from your job.

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