Five Credits Not To Be Overlooked

5 Credits not to Overlook

Not much can make you happy when it’s time to pay taxes. During the tax season, the tax credit can be your friend and ally, so it is important to know for which credits you can qualify. Tax credits reduce the amount of tax that you pay and some of them are even reimbursable. You can still get a refund if you qualify for a even if you do not have to pay any taxes. The following five tax credits can make taxation time a bit more friendly.

For those who work but don’t make a lot of money, Earned Income Tax Credit is available.    You can earn up to $6,431 credit and can be reimbursed. Eligibility is based on total income, status of filing and number of employees. Under certain circumstances, individual employees with zero employees are eligible for credit.

Child and Dependent Care Credit is available to those who use daycare or daycare services to provide children under 13 years of age with child care. This tax credit is not only for children and can be claimed for expenses for a disabled spouse or other dependent adult.

Child Tax Credit reduces your tax liability by $ 2,000 for each child under the age of 17, which you claim to be a household dependent. There are additional requirements for eligibility, although this credit can help to compensate for the costs of raising children.

The saver’s credit is available to people planning to retire. If you contribute through your employer to a pension plan or IRA and your income is less than $ 60,000 per year, you can qualify.

American Opportunity Tax Credit can help to make the four – year college after high school a bit cheaper. Each eligible student may receive up to $ 2,500 if he or she is enrolled for a full academic period of at least half time. This credit requires that you complete Form 8863, Education Credits, to be included in your tax return, even if you do not owe anything.