If you want to get as much money back as possible when you file your tax return, you need to take advantage of all the tax credits that are available to you. Since there are plenty of tax credits that many people don’t know about, we want to use this post to highlight some of the most significant ones:
- Earned Income Tax Credit
Although the Earned Income Tax Credit has been around since 1975, there are still plenty of people who haven’t heard of it or don’t know exactly how it works. This credit is for individuals and married couples between the ages of 25 and 65. This credit is designed to provide an incentive to work and offset the burden created by Social Security taxes. Speaking to a tax professional is the best way to get all the details on thresholds, other eligibility requirements and how much is available from this credit.
- Lifetime Learning Credit
Not only is this credit available for any years of post-secondary education, but it’s also available for people who aren’t pursuing a degree. This credit is available to both individuals and married couples. The credit can be as high as $2,000. When you look into this credit, it’s also a good idea to see if you’re eligible for the American Opportunity Tax Credit.
- Savers Tax Credit
If the name of this credit isn’t familiar to you, it’s worth noting that it was previously called the Retirement Savings Contributions Credit. This credit is intended to help lower income taxpayers make eligible contributions to accounts like 401(k)s or other retirement plans.
- Child and Dependent Care Credit
This tax credit is designed for parents. Its purpose is to help with the often significant costs associated with paying for daycare or other forms of childcare. It’s available to tax filers with a child under the age of thirteen. Depending on someone’s adjusted gross income, this credit can cover up to 35% of qualifying childcare expenses.
Don’t Miss Out On Any Tax Credits
While all of the tax credits covered above can be quite significant, they’re definitely not all that’s available. Given the immense size of the US tax code, the number of credits that may be available to you is quite large. If you want to ensure that you don’t miss out on any of those credits, you need to work with a Cincinnati tax professional. By letting an experienced professional handle your taxes, you can be confident that every applicable credit will be used for your return.
To get your tax return prepared and filed by a knowledgeable professional for a great price, call Donohoo Accounting Services today at 513-528-3982.