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 […]
— Read more
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 […]
— Read more
If you opt to file your tax return using the head of household filing status, the tax rate income brackets expand. That means if you earn up to $50,800, you’ll still be able to remain in the 15% tax bracket, however you must have a dependent to claim HOH. Otherwise, you’d be considered a single […]
— Read more
Dependents are an important part of the tax filing process. Understanding who qualifies as a dependent is essential, as two tax incentives – the Earned Income Tax Credit and Head of Household filing status -require taxpayers to have one or more dependents. In most cases, dependents are the taxpayer’s child, as they rely on the […]
— Read more
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 […]
— Read more
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 […]
— Read more
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 […]
— Read moreIf 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 […]
— Read moreErrors 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 […]
— Read moreWhether you’re in college currently, or have entered repayment of your student loans, every penny can matter. Maximize your tax refund by taking all the deductions you qualify for, including student loan interest. You may be eligible to deduct up to $2,500 from your taxable income if you’ve paid interest on your student loans. For […]
— Read more
