5 Tax Breaks For Dads To Help Celebrate Father’s Day

This Father’s Day, millions of dads will likely receive popular gifts like coffee mugs and socks, but they could also be cashing in on some valuable tax breaks from Uncle Sam. 

“Many dads don’t realize they qualify [for certain tax deductions], so it’s worth double checking, especially if you’re the primary caregiver,” says Paul Miller, a certified public accountant (CPA) and managing partner of Miller & Company in New York City. 

Whether you’re a single dad or spouse, a stay-at-home father or you go to work every day, there are many tax breaks that may apply. From claiming dependents, saving for your child’s education or looking to lower your taxable income, Uncle Sam might have a deduction or credit for you. 

Here are five tax breaks that dads can take advantage of in honor of Father’s Day. 

1. Your dependents can lower your tax bill 

If your child qualifies as a dependent, you can lower your tax liability on your federal income tax return. The IRS defines a dependent as a qualifying child or relative who receives financial support from you. 

“Before the 2017 Tax Cuts and Jobs Act (TCJA), taxpayers could claim a personal exemption for themselves, their spouse and each dependent essentially reducing their taxable income by around $4,000 per person,” Miller says. “But when the TCJA passed, personal exemptions were eliminated through at least 2025 and replaced with a higher standard deduction and expanded child tax credit.”

While claiming a child as a dependent alone doesn’t automatically lower your tax bill, it does open the door for other significant tax breaks — including the earned income tax credit, the child tax credit and other dependent-related deductions. 

To qualify as a dependent, a child must meet several criteria:  

• Be a U.S. citizen, national or a resident of Canada or Mexico.

2. 529 plans can help you save for your child’s education

Stashing money away for your child’s education through a 529 account can be a tax-efficient way to save. These accounts are intended to be used for college expenses, as well as up to $10,000 per year of K-12 tuition. 

For 2025, you can contribute up to $19,000 a year (or $38,000 if you’re married) without the amount counting against the lifetime gift tax exemption. 

While there’s no federal tax benefit for contributions to a 529 plan, your money grows tax-deferred while it’s in the account and, as long as you use the money for qualified education expenses, you won’t owe taxes on your investment earnings.

Plus, although contributions to a 529 plan aren’t deductible on your federal income tax return, more than 30 states offer tax deductions or credits for those who contribute, allowing you to lower your state income tax bill. 

“A 529 plan is a smart tool for dads who want to save for their kids’ future education without getting slammed by taxes,” Miller says. “Earnings grow tax-free, and withdrawals are also tax-free when used for qualified education expenses.” 

529 plans also offer additional flexibility: 

• You can use up to $10,000 per person in tax-free distributions to repay the 529 beneficiary’s student loan debt, plus the student loan debt of each of the beneficiary’s siblings.
• If your child doesn’t pursue higher education, you can transfer the funds to another eligible family member.
• You can roll up to $35,000 from a 529 account to a Roth IRA opened by the 529 beneficiary, as long as the 529 account has been open for at least 15 years. Contributions made within the last five years won’t qualify for the rollover.

However, Miller cautions that fathers must be careful when considering saving for a 529 plan. “One downside is that if the money is used for non-qualified expenses, you’ll face taxes and a 10 percent penalty on the earnings,” Miller says. 

3. The head of household filing status provides valuable tax benefits

If you’re a single dad, filing as head of household could pay off at tax time. 

The head of household option “typically offers a lower tax rate and a higher standard deduction than filing as single,” says Miller. For 2025, the standard deduction for head of household filers is $22,500, compared to $15,000 for single filers.

To qualify as head of household, you must meet the following requirements: 

• Be unmarried or considered unmarried on the last day of the year.
• Pay more than half the cost of keeping up a home.
• Have a qualifying child or dependent live with you in the home for more than half the year, with some exceptions. 

Even if your child doesn’t live with you full-time, you may still qualify under IRS rules, such as in cases of divorce or separation with shared custody.

4. The child tax credit can boost your tax refund

Fathers with qualifying children under age 17 may be eligible for the child tax credit — worth up to $2,000 per child for tax year 2025. To qualify, the child must be your dependent and generally live with you more than half the year. The credit is partially refundable — the refundable portion is called the additional child tax credit — which means you could receive up to $1,700 even if you don’t owe taxes. 

You can claim the full credit if your modified adjusted gross income is below: 

• $200,000 for single filers
• $400,000 for married couples filing jointly

For those earning above these thresholds, the credit phases out by $50 for every $1,000 over the limit.

However, the credit could soon get a boost if President Donald Trump’s signature “big, beautiful bill” becomes law. The comprehensive tax bill, which passed the House and is being debated in the Senate, aims to increase the maximum value of the child tax credit to $2,500 per child, effective from 2025 through 2028.

5. Claim the adoption tax credit if eligible

If you adopted a child, you might be eligible for a valuable tax credit to recoup some of the costs of the adoption process. Court costs, legal fees and home study findings are examples of costs that qualify.

The adoption tax credit is worth up to $17,280 per eligible child in 2025.

The child must be under 18 (unless physically or mentally incapable of taking care of themselves, in which case there’s no age limit), and the value of the credit starts to phase out if your modified adjusted gross income (MAGI) exceeds $259,190 in 2025 (that figure adjusts for inflation each year). Those with a MAGI exceeding $299,190 in 2025 won’t qualify for the credit.