The deadline to file your federal income tax return (April 17th) is fast approaching! We want you to be able to maximize your return, so here are a few last-minute tips on common tax credits you may be eligible for — and may be missing out on!
Four tax credits that will boost your federal income tax return:
1. The Earned Income Tax Credit
If you earn less than $49,078 in wages, are self-employed or a farmer, you are eligible to claim the earned income tax credit! With our hard-hit economy, millions more Americans have seen a drop in their wages and are not eligible for this tax credit, which could qualify you for a credit of up to $5,751 depending on your income, age and the number of qualifying children you have already claimed. Even if you don’t have children, you can still qualify for this credit! For more information, check out IRS Publication 596, Earned Income Credit.
2. The Child and Dependent Care Tax Credit
If you claim qualifying children under the age of 13, you are eligible to claim the child and dependent care tax credit to help cover the expenses you pay to care for your dependent. A disabled spouse and other qualifying dependents also make you eligible. To learn more, review IRS Publication 503, Child and Dependent Care Expenses.
3. The Child Tax Credit
You can claim a maximum tax credit of up to $1000 for each qualifying child IN ADDITION TO the child and dependent care tax credit. This could be a huge tax return boost if you qualify! To find out more, see IRS Publication 972, Child Tax Credit.
4. The Retirement Savings Contributions Credit
Also known as the “saver’s tax credit,” the retirement savings contributions tax credit helps low-to-moderate income workers save for retirement. If you contribute to an IRA or workplace retirement plan (like a 401k), you may qualify for this tax credit, which is actually claimable in addition to any other tax savings you may qualify for. To learn more, check out IRS Publication 590, Individual Retirement Arrangements (IRAs).
If you have any lingering questions on tax credits or how to maximize your tax return, or if you prefer to have your tax return prepared by a professional this year, Beaton Accounting can help. All of our tax preparers are experienced tax professionals to ensure the accuracy of your filing and the maximization of your return.
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