- For every tax problem there is a solution which is straightforward, uncomplicated and wrong.
Tax Credit Through Dependants Many taxpayers believe that they cannot claim a working child as a dependent.
However, if your child lives with you and you pay over half of their support - clothes, food, medical expenses, and shelter - they qualify as a dependent.
This entitles you to tax relief.
Tax Credit When You Sell Your Home You may be eligible for a substantial amount of tax relief if you lived in your home two out of five years before you sold it.
At one time, whether you could exclude a profit amount depended on your age.
This is no longer true under current law.
If you qualify, this form of relief is available every two years.
Tax Relief With Student Credits While there is no tax exemption for students and they do have to pay taxes, they may be able to claim special credits for tax relief.

• The Hope Scholarship Credit is specific and only available during the first two years of college.
  To be eligible, you have to be pursuing an undergraduate degree, be enrolled for at least two semesters, and have no felony drug convictions.
  
• The Life Time Learning Credits, however, are much less particular, and available throughout all the years of college.
  You may also be eligible if you are just taking a course to improve your job skills.
  You do not have to be pursuing a degree, it's available for any number of courses, and having a felony drug conviction doesn't exclude you.