Maximize Your Tax Savings with These Family-Friendly Strategies
When you're raising a family, every dollar matters—and tax time is no exception. According to a Kiplinger article on family tax breaks, many parents are missing out on valuable deductions and credits that could significantly reduce their tax burden.
At UNest, we’re all about helping parents stretch their dollars further. That means investing wisely, saving consistently, and knowing how to take full advantage of the tools available—including the tax code.
Here are three ways you can boost your savings and reduce your taxes, starting today:
- Open a UTMA Account for Your ChildA Uniform Transfers to Minors Account (UTMA) allows you to invest money for your child’s future. While UTMA contributions aren’t tax-deductible, the account offers potential tax advantages on unearned income and gives your child a financial head start for college, a home, or even launching a business. With UNest, setting one up takes just minutes.
- Leverage the Child Tax Credit and Dependent Care CreditFamilies with children under 17 may qualify for a Child Tax Credit of up to $2,000 per child. If you’re paying for childcare while you work, you could also receive up to $3,000 per child (up to two children) through the Dependent Care Credit. These credits can be game-changers for working parents.
- Maximize Your Deductions with UNest RewardsThis is where it gets interesting. UNest Rewards lets you earn money back by shopping with popular brands—and that cash goes straight into your child’s investment account. While the rewards themselves aren’t deductible, they can indirectly boost your savings without requiring extra spending.
Tax season doesn’t have to feel like a burden. With the right strategy—and the right tools—you can turn it into an opportunity to secure your family’s financial future.
Whether you’re investing for college, career, or a first car, the key is to start now. Make your money work smarter, not harder.📲 Start investing tax-smart for your child today!
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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