Category Archives: Credits

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 […]

Important Tax Credits For 2017 Families

The Child Tax Credit can save parents up to $1,000 per child based on income. Higher income families are entitled to a smaller credit, as the IRS reduces the credit at modified adjusted gross income of $110,000 for joint, married taxpayers. The Child and Dependent Care Credit is an excellent way to recover some expenses […]

2017’s Earned Income Tax Credit

Many people forget about claiming the Earned Income Tax Credit (EITC) if they qualify. In fact, one out of every five qualified workers fail to claim the credit. This credit does more than reduce the amount of taxes you owe. Depending on your situation, you could be eligible for a refund, and there’s a chance […]

If you’ve claimed the EITC in the past, or you’re wondering if you’re eligible this year, you may have already researched the different income thresholds that determine whether you qualify. However, you might not know that there are other rules that affect eligibility in addition to the income limits. These include: Having at least $1.00 […]

Errors on your tax return happen, and generally they delay your refund. When the mistake is made while claiming the Earned Income Tax Credit, you can expect to wait a little longer to receive that part of your tax refund, even extending into months-long delays. In some cases, errors on the EITC portion of your […]