U.S. Gov Connect Reporting On U.S. Government Programs & Regulations
Tax Credits for those that qualify can reduce the amount consumers may owe the IRS each year. One of the main benefits of Tax Credits is that it can really boost your tax refund. Unlike tax deduction, which reduces your taxable income, Tax Credits could directly put money in filers pockets at tax time. More importantly a refundable Tax Credit not only reduces your tax liability, but can exceed what you owe and put money directly in your pocket.
Example: Taxpayer A owes $1000 in taxes, but qualifies for a $2000 refundable Tax Credit. Taxpayer A would receive $1000 from the IRS.
3. The Savers Tax Credit
The Saver’s Credit: If your family makes less than $60,000 per year, you could qualify for double benefits from your retirement contributions. You can save for the future and increase your income tax returns.
How Tax Credits Work
1. Child Tax Credit
Qualifications: In order to qualify for the credit children must meet certain requirements that include age, relationship, support, dependent, citizenship and residence. Continue With The Child Tax Credit.
By: Patrick Mansfield | U.S.Gov Connect
Most Popular Topics
Most Read Articles
7. Residential Energy Tax Credits
If you made improvements or installed any energy saving equipment in your home in 2015 or 2016, you may be entitled to some tax benefits Continue With The Residential Energy Tax Credit.
8. The Dependent Care Tax Credit.
Individuals who pay for child or dependent care in order to be able to work or search for work may be eligible to claim the Child and Dependent Care Tax Credit. Continue With The Dependent Care Tax Credit.
4. Education Tax Credits
Two common tax deductions are available to help alleviate the cost of college: the American Opportunity Credit and the Lifetime Learning Credit. Using these educational tax credits can help decrease tuition costs by up to $2,500 per year per dependent child. Continue With The Education Tax Credit.
6. Advanced Premium Tax Credit
When someone chooses to pay their health insurance premiums using tax credits, it is called “advanced payments of the premium tax credit” or “advance credit payments”. Continue With Advanced Premium Tax Credit.