Five Credits You Shouldn’t Overlook

Not too many things can make you happy when it comes time to pay your taxes. The tax credit can be your friend and ally during tax season, so it’s important to get informed about which you may qualify for. Tax reduce the amount of tax you are responsible for paying, and some are even refundable. Even if you don’t have to pay any taxes, you can still get a refund if you qualify for a refundable credit. The following five tax can help make tax time a little bit friendlier.

is available to those who work, but don’t make a great deal of money. It can earn you up to $6,143, and is refundable. Eligibility is based on the total income, filing status, and the number of dependents. Under certain circumstances, single employees with zero dependents can qualify for the credit.

Child and Dependent Care Credit is offered to those who utilize the services of a day camp or day care to provide child care to children under 13. This tax credit doesn’t just apply to children, and it may be claimed for expenses incurred while caring for a disabled spouse or other dependent adult.

reduces your tax liability by $1,000 for each child under 17 that you claim as a dependent in your household. There are additional eligibility requirements, though this credit can help offset the cost of raising children.

The Saver’s Credit is available to those who plan for retirement. If you contribute to a retirement plan or IRA through your employer, and your income is less than $60,000 a year, you may qualify.

American Opportunity Tax Credit can help make the four years of college following high school a little bit less expensive. Each eligible student can receive up to $2,500 if they are enrolled at least half-time for a full academic period. This credit requires completion of Form 8863, Education Credits, to be included with your tax return, though you may qualify even if you don’t owe anything.