Tax Deductions for Parents: Navigating Credits and Deductions for Your Family

Key Takeaways

1. Understanding Tax Credits and Deductions: Learn the differences between tax deductions, which lower taxable income, and tax credits, which directly reduce tax owed. Utilizing these can significantly improve family finances.
2. Maximizing Child-Related Benefits: Explore essential credits like the Child Tax Credit, Child and Dependent Care Credit, and the Earned Income Tax Credit, key for optimizing tax returns and increasing refunds.
3. Educational and Medical Deductions: Understand deductions for education expenses, such as 529 College Savings Plans and Coverdell ESAs, and medical expenses, noting eligibility conditions.
4. Strategic Tax Planning: Adopt proactive strategies like adjusting withholdings and using strategic filing options like the Head of Household status to enhance tax outcomes.
5. Utilizing Resources and Professional Advice: Make use of IRS tools, tax software, and professional advice to navigate complex tax situations and maximize tax benefits.

Introduction: Unveiling Tax Savings for Your Family

Navigating the world of taxes can often feel like traversing a labyrinth, particularly for parents striving to balance the demands of family life with financial wisdom. With the ever-evolving tax laws and the array of deductions and credits available, understanding how to maximize your tax benefits can significantly impact your family’s financial health. This blog post is crafted to demystify the complex landscape of tax deductions and credits specifically tailored for parents, aiming to illuminate pathways to potential savings and financial betterment.

Tax deductions and credits are powerful tools in your financial toolkit, each possessing the unique ability to lower your tax bill, albeit in different ways. Deductions reduce your taxable income, thereby possibly placing you in a lower tax bracket, while credits provide a dollar-for-dollar reduction of your tax liability, often yielding a more substantial financial benefit. For families, these provisions can translate into meaningful savings, enabling more resources to be allocated towards your family’s goals and needs.

As we delve into the specifics of child-related tax benefits, from the Child Tax Credit to deductions for education expenses, this guide will navigate you through the essential information, eligibility criteria, and strategic considerations to optimize your tax situation. Whether you’re a new parent grappling with the financial changes that come with parenthood or you’re looking to refine your tax strategies as your children grow, this post aims to equip you with the knowledge and confidence to make informed decisions.

By the end of this exploration, you’ll have a clearer understanding of the tax advantages available to your family and how to leverage these benefits to enhance your financial landscape. Let’s embark on this journey together, turning the complexity of tax codes into opportunities for your family’s financial enhancement.

Understanding the Basics: Deciphering Tax Deductions and Credits

Before we delve into the specifics of tax deductions and credits available to parents, it’s crucial to grasp the foundational concepts that underpin the tax system. This knowledge will empower you to navigate tax planning with confidence and ensure you’re capitalizing on the opportunities available to reduce your tax liability and enhance your family’s financial well-being.

Tax Deductions: Lowering Your Taxable Income

Tax deductions are specific expenses the IRS allows you to subtract from your gross income, thereby reducing the portion of your income subject to taxes. Think of deductions as discounts on your taxable income; the more deductions you can claim, the less income you’ll be taxed on. For families, this can mean deducting expenses related to home mortgage interest, medical costs, and charitable contributions, among others.

• Standard Deduction vs. Itemized Deductions: You have the option to take a standard deduction—a fixed amount based on your filing status—or to itemize deductions, listing each deductible expense individually. For many families, the decision hinges on which method offers the greater tax-saving benefit.

Tax Credits: A Direct Reduction in Your Tax Bill

Tax credits, on the other hand, are a direct reduction of your tax liability, dollar for dollar. Imagine a tax credit as a coupon that decreases the amount of taxes you owe. Some credits are refundable, meaning if the credit exceeds your tax liability, you can receive the difference as a refund. This feature makes certain tax credits particularly valuable for families, offering a potential boost to your household income.

• Non-refundable Credits: These credits can reduce your tax bill to zero but won’t result in a refund if the credit exceeds your liability.
• Refundable Credits: More beneficial, these credits can result in a refund, providing additional income to families that qualify.

The Impact on Your Family’s Finances

The strategic use of tax deductions and credits can significantly affect your family’s finances. By lowering your taxable income and reducing your tax bill, you can free up more resources for your family’s needs, savings, and investments. Understanding these tools is the first step toward optimizing your tax situation and ensuring you’re not leaving money on the table.

As we progress through this guide, keep these basic principles in mind. They will serve as the foundation for understanding the specific deductions and credits discussed in the following sections, helping you to navigate the complexities of the tax code with greater ease and confidence.

Essential Tax Credits for Parents

For families, navigating the tax landscape can reveal valuable opportunities to reduce tax liabilities through various credits specifically designed with parents in mind. These credits can be particularly impactful, directly reducing the amount of tax owed and, in some cases, increasing your refund. Here, we’ll explore some of the most significant tax credits for parents, detailing eligibility criteria and how to make the most of these benefits.

Child Tax Credit (CTC)

The Child Tax Credit is a cornerstone of tax relief for parents, offering a substantial credit for each qualifying child under the age of 17.

• Eligibility Criteria: To qualify, children must be under 17 at the end of the tax year, have a valid Social Security number, and meet certain relationship, support, and residency tests.
• Credit Amounts and Phase-Out Thresholds: The CTC provides a credit of up to a specified amount per qualifying child. The credit begins to phase out at certain income thresholds, which vary based on your filing status.

Child and Dependent Care Credit

This credit is designed to assist working parents in covering the costs of care for children under 13 or incapacitated dependents, enabling employment.

• Qualifying Expenses: Eligible expenses include daycare, summer camps, and after-school programs that allow parents to work or actively seek employment.
• How to Calculate the Credit: The credit is a percentage of your allowable expenses, based on your adjusted gross income (AGI). There’s a cap on the total expense amount you can claim.

Earned Income Tax Credit (EITC)

The EITC is a refundable credit aimed at assisting low- to moderate-income working parents, potentially yielding significant tax savings or refunds.

• Benefits for Low- to Moderate-Income Families: This credit varies based on income, filing status, and the number of children, with the potential to substantially reduce tax liability or increase refunds.
• How to Determine if You Qualify: Eligibility for the EITC depends on your income, filing status, and other factors. The IRS provides guidelines and calculators to help determine if you qualify and estimate your credit.

Maximizing Your Benefits

To fully leverage these credits, ensure you meet the eligibility criteria and understand the documentation required to claim them. Keep accurate records of relevant expenses and income, and consider consulting a tax professional if your situation is complex. Remember, even small differences in your tax filing can significantly impact the benefits you receive, making it crucial to pay attention to detail and stay informed about current tax laws and regulations.

In the next sections, we’ll delve into specific tax deductions available to parents, further expanding your toolkit for tax planning and optimization. By combining knowledge of deductions and credits, you can create a comprehensive tax strategy that maximizes your family’s financial health.

Table 1: Comparison of Key Tax Credits for Parents

Tax Deductions Specific to Parents

While tax credits provide a dollar-for-dollar reduction in your tax bill, deductions lower your taxable income, potentially placing you in a lower tax bracket and reducing your overall tax liability. For parents, several deductions can be particularly beneficial, covering a range of family-related expenses from education to healthcare. In this section, we’ll explore key tax deductions that can help families manage their financial responsibilities more effectively.

Education Expenses

Investing in your child’s education is not only a pathway to their future success but can also offer tax advantages. Here are some education-related deductions parents should consider:

• Coverdell Education Savings Account (ESA): Contributions to a Coverdell ESA are not deductible, but the earnings grow tax-free, and distributions used for qualified education expenses are also tax-free.
• 529 College Savings Plans: Similar to the Coverdell ESA, contributions to a 529 plan are not deductible on your federal taxes, but many states offer deductions or credits for contributions. Earnings and withdrawals are tax-free when used for qualified expenses.
• Student Loan Interest Deduction: If you’re paying interest on student loans for yourself, your spouse, or your dependents, you may be eligible to deduct up to a certain amount of interest paid during the year, subject to income limits.

Table 2: Key Tax Deductions for Educational Expenses

Medical and Dental Expenses

Healthcare costs can be a significant burden for families, but the IRS allows deductions for unreimbursed medical and dental expenses that exceed a certain percentage of your adjusted gross income (AGI).

• Types of Expenses That Can Be Deducted: Deductible expenses include payments for doctors, dentists, surgeons, and other medical practitioners, as well as costs for hospital stays, prescription medications, and medical equipment.
• Threshold for Deductions: Only the amount of your total medical expenses that exceed a specific percentage of your AGI can be deducted. This threshold can change, so it’s important to verify the current requirements.

Adoption Credit

While not a deduction, the Adoption Credit is worth mentioning here due to its significance for parents who are expanding their families through adoption. This credit allows you to offset qualified adoption expenses, making adoption a more feasible option for many families.

• Eligible Adoption Expenses: Qualifying expenses for the Adoption Credit include adoption fees, court costs, attorney fees, traveling expenses (when related to the adoption process), and other expenses directly related to the legal adoption of an eligible child.
• How to Claim the Credit: To claim the Adoption Credit, you’ll need to fill out Form 8839 and attach it to your tax return. The credit is subject to income limitations, which may affect the amount you can claim.

Planning and Documentation

To take full advantage of these deductions, meticulous planning and record-keeping are essential. Keep detailed records of all education-related expenses, medical bills, and adoption-related costs throughout the year. Be aware of the specific requirements and limitations for each deduction, and consider consulting with a tax professional to ensure you’re maximizing your tax benefits.

In the following sections, we’ll continue to explore other tax considerations for parents, including deductions for dependents and strategies for optimizing your tax situation. By understanding and applying these deductions effectively, you can enhance your family’s financial health and navigate the tax season with greater ease.

Navigating Deductions for Dependents

Claiming deductions for dependents is a crucial aspect of tax planning for families, providing opportunities to further reduce taxable income. This section explores key considerations and recent changes affecting how parents can claim dependents, including insights into filing status and its implications for tax deductions.

Dependent Exemption Changes

Recent tax reforms have made significant changes to how dependents are claimed on tax returns, impacting the benefits families might receive.

• Changes in Tax Law: It’s important to note that the Tax Cuts and Jobs Act (TCJA) of 2017 suspended personal and dependent exemptions from 2018 through 2025. While this change might seem like a disadvantage, it was partially offset by an increase in the standard deduction and enhancements to other tax benefits for families, such as the Child Tax Credit.
• How to Claim Dependents Under Current Laws: Despite the suspension of dependent exemptions, you can still claim benefits for dependents through other tax provisions. For each qualifying child or dependent, you may be eligible for credits like the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC), and the Child and Dependent Care Credit.

Head of Household Filing Status

For single parents, the Head of Household (HoH) filing status can offer more favorable tax rates and a higher standard deduction compared to filing as Single. This status is particularly beneficial for tax planning and optimizing deductions.

• Benefits of This Filing Status: HoH status not only provides a higher standard deduction but also generally offers lower tax rates than other filing statuses. This can significantly reduce your overall tax liability, making it a valuable option for eligible single parents.
• Qualification Criteria: To qualify as Head of Household, you must be unmarried or considered unmarried on the last day of the tax year, have paid more than half the cost of keeping up a home for the year, and have a qualifying child or dependent who lived with you for more than half the year.

Strategic Implications for Families

Understanding the nuances of claiming dependents and choosing the appropriate filing status can have significant implications for your family’s tax situation. While the loss of the dependent exemption might seem challenging, the enhanced standard deduction and available tax credits can still provide substantial tax relief.

• Maximizing Tax Benefits: Evaluate your eligibility for various tax credits associated with dependents to ensure you’re maximizing your tax benefits. Consider the impact of the Head of Household filing status on your tax obligations, particularly if you’re a single parent.
• Professional Guidance: Given the complexities of tax laws and the potential for significant financial impact, consulting with a tax professional can be invaluable. They can provide personalized advice tailored to your family’s situation, ensuring you navigate these provisions effectively.

In the next sections, we’ll delve into strategies for utilizing these credits and deductions effectively and explore long-term tax planning considerations for families. By staying informed and proactive in your tax planning, you can optimize your family’s financial health and navigate the tax season with confidence.

Maximizing Your Benefits: Strategic Use of Credits and Deductions

For parents looking to optimize their tax situation, understanding how to strategically utilize tax credits and deductions is key. This section provides insights into effective strategies for leveraging these tax benefits, as well as common pitfalls to avoid, ensuring you maximize the financial advantages available to your family.

Strategies for Utilizing Credits and Deductions

The intelligent application of tax credits and deductions can significantly reduce your tax liability, potentially resulting in substantial savings. Here are strategies to consider:

• Plan and Time Expenses: Some tax credits and deductions depend on when expenses were paid. For instance, paying for eligible medical procedures or educational expenses in a year when you anticipate higher income can maximize deductions and credits.
• Stacking Credits and Deductions: Understand how different credits and deductions interact. For example, you might be able to claim both the Child and Dependent Care Credit and the Earned Income Tax Credit, but you need to ensure that the expenses qualify for both and are allocated appropriately.
• Contribute to Education Savings Accounts: Maximize contributions to Coverdell ESAs or 529 plans to take advantage of tax-free growth, even if contributions aren’t deductible on your federal return. Many states offer deductions or credits for 529 plan contributions, providing an additional tax benefit.

Common Pitfalls to Avoid

While navigating tax credits and deductions, it’s easy to overlook opportunities or make mistakes that could reduce your benefits. Be aware of these common pitfalls:

• Overlooking Eligible Credits and Deductions: Ensure you’re aware of all the credits and deductions for which you’re eligible. Commonly overlooked benefits include the Child and Dependent Care Credit, the Adoption Credit, and education-related deductions.
• Errors in Claiming Dependents: Properly claiming dependents is crucial for maximizing credits like the Child Tax Credit. Ensure you meet all the criteria for dependents to avoid issues with your return.
• Not Adjusting Withholding: If you anticipate significant deductions or credits, adjust your tax withholding accordingly. This can prevent you from overpaying taxes throughout the year and improve your cash flow.

Taking a Proactive Approach

By adopting a proactive approach to your tax planning, you can ensure that you’re not only compliant with tax laws but also taking full advantage of the benefits available to your family. Regularly review your tax situation, especially after major life events such as the birth of a child, a change in income, or significant medical expenses. This will allow you to adjust your strategies and withholdings as necessary, avoiding surprises at tax time.

In the next sections, we’ll explore additional considerations for planning for future tax years and provide tools and resources to assist you in navigating the complexities of family-related tax planning. By staying informed and strategic in your approach, you can enhance your family’s financial well-being and navigate the tax season with greater ease and confidence.

Table 3: Adjusting Withholding: Key Considerations for Parents

Planning for Future Tax Years: Long-term Strategies for Families

Effective tax planning doesn’t stop with the current year’s return. Looking ahead and adopting a forward-thinking approach to your family’s tax situation can yield significant benefits over time. This section covers strategies for adjusting your tax withholdings and estimated tax payments, as well as long-term planning considerations to optimize your family’s financial future.

Adjusting Withholding and Estimated Tax Payments

One of the keys to effective tax management is ensuring that your withholdings and estimated tax payments accurately reflect your expected tax liability, especially when considering the impact of various deductions and credits for which your family is eligible.

• Importance of Adjusting for Tax Credits and Deductions: If you anticipate claiming significant credits and deductions, such as those related to childcare or education expenses, it may be beneficial to adjust your withholdings. This can prevent overpaying taxes throughout the year and improve your family’s cash flow.
• How to Estimate and Adjust: Utilize the IRS’s Tax Withholding Estimator tool to assess your current withholding and make necessary adjustments. If you’re self-employed or have significant non-wage income, consider adjusting your quarterly estimated tax payments to account for expected deductions and credits.

Long-term Tax Planning Strategies

Looking beyond the current year, there are several strategies families can employ to optimize their tax situation and support their long-term financial goals.

• Considerations for Future Education Expenses: If you’re saving for your child’s education, explore tax-advantaged savings options like 529 plans and Coverdell Education Savings Accounts (ESAs). Contributions to these accounts grow tax-free when used for qualified education expenses, providing a long-term tax benefit.
• Planning for Adoption or Expansion of the Family: If you’re considering adoption or expanding your family, familiarize yourself with the Adoption Credit and other tax benefits related to dependents. Planning for these expenses and understanding how to claim associated credits can significantly impact your tax strategy.

Embracing a Proactive Tax Planning Mindset

Adopting a proactive mindset toward tax planning involves regular review and adjustment of your financial strategies in response to changes in tax laws, your family’s circumstances, and your long-term financial goals. This may include:

• Staying Informed About Tax Law Changes: Tax laws evolve, and staying informed about changes that could affect your family is crucial. This might involve consulting with a tax professional or utilizing resources provided by the IRS and other financial planning organizations.
• Engaging with a Tax Professional: For complex situations or significant life changes, consulting with a tax professional can provide personalized advice and ensure you’re maximizing your tax benefits.

By incorporating these strategies into your family’s financial planning, you can navigate the complexities of the tax system more effectively, reducing your tax liability and enhancing your financial well-being over the long term. In the final section, we’ll provide a list of tools and resources to support your ongoing tax planning efforts.

Tools and Resources for Parents: Navigating Tax Planning with Confidence

Arming yourself with the right tools and resources is essential for effectively navigating the tax planning landscape, especially when it comes to maximizing deductions and credits for your family. This final section provides a curated list of resources to support your tax planning efforts, ensuring you have access to reliable information and guidance.

IRS Publications and Resources

The IRS offers a wealth of publications and online tools designed to assist taxpayers in understanding their obligations and opportunities:

• IRS Publication 501 (Dependents, Standard Deduction, and Filing Information): This publication provides detailed information on claiming dependents and understanding your filing requirements.
• IRS Publication 972 (Child Tax Credit and Credit for Other Dependents): A valuable resource for understanding the Child Tax Credit and how to claim it.
• IRS Tax Withholding Estimator: An online tool that helps you ensure your withholdings match your tax liability, preventing underpayment or overpayment of taxes.

Tax Preparation Software

Several tax preparation software programs are designed to simplify the tax filing process, helping you identify eligible deductions and credits:

• TurboTax: Offers a user-friendly interface and a comprehensive approach to maximizing your tax return, including deductions and credits relevant to families.
• H&R Block: Provides robust tax filing services with options for online filing and in-person assistance, ensuring you don’t miss any family-related tax benefits.

Professional Tax Advice

For complex situations or to ensure you’re making the most of your tax planning opportunities, consulting with a tax professional can be invaluable:

• Certified Public Accountants (CPAs): CPAs can provide personalized tax advice and preparation services, helping you navigate the complexities of the tax code.
• Enrolled Agents (EAs): EAs are federally-licensed tax practitioners who specialize in tax preparation and representation before the IRS, offering expert guidance on tax issues.

Engaging with Financial Planning Communities

Participating in financial planning communities and forums can offer additional insights and tips from fellow parents navigating similar tax planning challenges:

• Online Forums: Platforms like Reddit’s r/FinancialPlanning or Bogleheads.org provide spaces to discuss tax strategies and seek advice from a community of informed individuals.
• Financial Blogs and Websites: Following reputable financial blogs and websites can keep you informed about tax planning strategies, changes in tax laws, and tips for optimizing your family’s financial health.

Table 4: Common Pitfalls in Claiming Tax Benefits for Parents

Conclusion: Empowering Your Family’s Financial Journey

By leveraging the tools and resources outlined in this guide, you can approach tax season with confidence, equipped to maximize the benefits available to your family. Remember, effective tax planning is an ongoing process that can significantly impact your family’s financial well-being. Stay informed, consult professionals as needed, and take proactive steps to ensure your tax strategies align with your family’s goals and needs.

As we conclude this comprehensive exploration of tax deductions and credits for parents, we invite you to engage further with the content, ask questions, and seek personalized advice to navigate your unique financial landscape. Your journey towards financial literacy and empowerment is a continuous one, and we’re here to support you every step of the way.

By embracing the strategies and resources shared in this guide, you’re well on your way to optimizing your family’s tax situation and enhancing your financial future.

Frequently Asked Questions (FAQs) on Tax Deductions and Credits for Parents

Creating a FAQs section can provide quick, accessible answers to common questions, further enhancing the value of your blog post on tax deductions and credits for parents. Here’s a comprehensive FAQs section that addresses typical concerns and queries:

1. What is the difference between a tax deduction and a tax credit?

A tax deduction reduces your taxable income, potentially lowering your tax bracket and the amount of tax you owe. In contrast, a tax credit directly reduces your tax bill, dollar for dollar. Tax credits can be more valuable because they reduce your tax liability rather than just lowering your taxable income.

2. How do I know if I’m eligible for the Child Tax Credit (CTC)?

You’re generally eligible for the CTC if you have a qualifying child under the age of 17 at the end of the tax year. The child must have a valid Social Security number and meet specific relationship, residency, and support criteria. Income limits also apply, and the credit amount phases out at higher income levels.

3. Can I claim the Child and Dependent Care Credit for summer camp expenses?

Yes, the cost of day camps can qualify for the Child and Dependent Care Credit if the camp enables you (and your spouse, if filing jointly) to work or look for work. However, overnight camps do not qualify.

4. Is the Earned Income Tax Credit (EITC) refundable?

Yes, the EITC is a refundable tax credit, meaning if the credit exceeds the amount of taxes you owe, you can receive the difference as a refund.

5. What education expenses are tax-deductible?

You can deduct certain education-related expenses, such as student loan interest paid up to a certain amount. While contributions to 529 plans and Coverdell Education Savings Accounts (ESAs) are not deductible on your federal return, many states offer tax benefits for these contributions. Qualified distributions from these accounts for education expenses are tax-free.

6. How has the suspension of personal exemptions affected claiming dependents?

The Tax Cuts and Jobs Act suspended personal and dependent exemptions from 2018 through 2025. However, families can still benefit from claiming dependents through other tax provisions, such as the Child Tax Credit and the Child and Dependent Care Credit.

7. What are the benefits of filing as Head of Household?

Filing as Head of Household (HoH) offers a higher standard deduction and potentially lower tax rates compared to filing as single or married filing separately. To qualify, you must be unmarried or considered unmarried at the end of the year, have paid more than half the cost of keeping up a home, and have a qualifying person living with you for more than half the year.

8. How can I adjust my tax withholdings if I expect to claim more deductions or credits this year?

Use the IRS’s Tax Withholding Estimator tool to assess your current withholdings and make necessary adjustments. If you expect to claim more deductions or credits, you might need to decrease your withholdings to prevent overpaying taxes throughout the year.

9. Are adoption expenses deductible?

While adoption expenses themselves are not deductible, you may be eligible for the Adoption Credit, which can offset qualified adoption expenses. This credit is subject to income limitations, which may affect the amount you can claim.

10. Where can I find more information or get help with my taxes?

The IRS website provides comprehensive resources, including publications and online tools, to help taxpayers understand their obligations and opportunities. For personalized assistance, consider consulting a tax professional, such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA).

Example Tax Deductions and Credits Checklist for Parents

To ensure you’re maximizing your family’s tax benefits, use this comprehensive checklist when preparing your tax return. This resource is designed to help you identify and claim all applicable deductions and credits, making tax season smoother and more beneficial for your family.

Personal Information

• Social Security numbers for yourself, your spouse, and all dependents.

Dependent-Related Credits

• Review eligibility for the Child Tax Credit (CTC) for children under 17.
• Determine if you qualify for the Child and Dependent Care Credit for childcare expenses.
• Check eligibility for the Earned Income Tax Credit (EITC) if you have low to moderate income.
• Consider the Adoption Credit if you had qualified adoption expenses.

Education-Related Deductions and Credits

• Track expenses related to education savings accounts like 529 plans or Coverdell ESAs.
• Gather documentation for student loan interest payments if you’re eligible to deduct them.
• Review expenses for tuition and fees to see if you qualify for the American Opportunity Credit or the Lifetime Learning Credit.

Healthcare-Related Deductions

• Tally medical and dental expenses that exceed the AGI threshold, including insurance premiums if self-employed.
• Compile receipts for Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions and distributions.

Employment and Income Information

• W-2 forms for you and your spouse.
• Records of any unemployment income, if applicable.
• Information on any self-employment income and related expenses.

Other Deductions and Credits

• Assess eligibility for other deductions such as charitable contributions, mortgage interest, and real estate taxes.
• Consider state and local taxes paid that could be deductible.

Planning and Adjustments

• Review the need to adjust tax withholdings with your employer using a new W-4 form, especially after significant life changes.
• Plan for next year’s tax situation based on anticipated changes in income, family size, or expenses.

Documentation and Record-Keeping

• Ensure all receipts, bills, and statements are organized and accessible for reference or in case of an IRS audit.
• Keep a record of any estimated tax payments made during the year.

Professional Consultation

• Consider scheduling a consultation with a tax professional if your situation is complex or you’ve experienced significant changes in the past year.