Your Kids Can Save You Thousands at Tax Time

Kids can cost a fortune, whether you're talking diapers or designer jeans. But when tax time rolls around, your progeny can save you hundreds or even thousands of dollars, as long as you know where to look for savings.

The federal tax code offers numerous deductions and credits for parents of dependent children. You may qualify for some or all of the following tax breaks:

The exemption: Parents of dependent children under age 19 (or dependent full-time students under age 24) can claim a $3,400 exemption per child. For a couple in the 25% tax bracket, that exemption could amount to a savings of $850. ...