Category Archives: Credits

Five Credits Not To Be Overlooked

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 […]

If you are a parent and have to work, there is a good chance that you will have to pay for your child’s care during work hours. This can be quite expensive, but thankfully there is a tax credit which can help to compensate for the cost of childcare. The is the Child and Dependent […]

Education in Tax Credits

For those who pay for their education, some tax credits can help to reduce the amount due. For those responsible for education expenses, such as tuition, fees, textbooks, supplies and equipment, the American Opportunity Credit and the Lifetime Learning Credit are available. Some expenses incurred, such as insurance, transport and personal charges, are not eligible […]

Form 2441 Child and Dependent Care Credit

It can be expensive to hire a professional to care for a disabled adult or to pay for childcare services for children under 13. Fortunately, the government has a tax credit to reduce these costs and put more money in your pocket. The child and dependent care credit can put up to 35 percent of […]

When the EITC is Denied

If a taxpayer has had an EITC claim denied for any year after 1996, or if the EITC claim was reduced, and not due to a mathematical or clerical error, the taxpayer is required to attach Form 8862 the next time he tries to claim the EITC. If not, the claim is automatically denied. This […]

The Child Tax Credit Explained

The Child Tax Credit is a popular credit among parent taxpayers. If you have children, you may be eligible to claim $1,000 per child on your tax return. In order to be claimed, your children must meet the following criteria: They must be less than 17 years old Have a Social Security number assigned prior […]

The Earned Income Tax Credit

There aren’t many refundable tax credits, however they can significantly make your pockets fuller at tax season. The Earned Income Tax Credit is one of the most popular refundable tax credits. Introduced in 1975 as part of the Internal Revenue Code, the purpose of this credit is to put more money back into the hands […]

Is That Credit Refundable?

There are two different types of tax credits: refundable and non-refundable. In general, most tax credits aren’t refundable, but there are a few that can add a little extra cash back into your pocket at tax time. There’s a significant difference between the two types, so it’s important to know which category your credit falls […]

Tax Credits vs. Tax Deductions

Tax credits and deductions are two different beasts. Tax credits are seen as the better of the two, however both can save you money when you file your taxes. Deductions reduce the amount of income that is subject to taxes. For example, if your earned income was $65,000 and you claimed $15,000 in deductions, then […]

Two Education Credits Explained for 2017

Students and graduates can save a significant amount of money at tax time by utilizing one of the following education credits. American Opportunity Credit You can claim up to $2,500 per student to account for tuition, activity fees, books, equipment and supplies, provided the student in within their first four years of college. Requirements state […]