Cash In on Kids at Tax Time

And while I know you'd do anything for your child, please consider this next option your last resort: If you take funds out of your IRA to pay for your kid's college tuition, you will not have to pay the 10% early distribution fee that would be charged on other distributions taken before age 59. Of course, you would owe income tax on the money.

In addition, if you want to help your child and spouse buy their first home, you could again take the funds out of your IRA and qualify for the first-time home buyer withdrawal. That means you would not owe the 10% penalty again, but you would owe the income tax on the withdrawal.

But while you love your children and want to help them, please make sure you're covered in retirement before you pull money from your IRA.

So take advantage of your little sweeties while you still can. Soon enough they'll be out on their own and that's one deduction you'll certainly miss.