Five Tax Credits You Should Claim

Tax Act

Five Tax Credits You Should Claim

If you are eligible for these five tax credits, you should claim them this year on your tax return. These credits will reduce the tax your owe directly and some can be refunded to you if you owe no taxes at all.

The Earned Income Tax Credit (EITC) is for lower income earners and considers the number of children that you have when calculating the tax credit. The tax credit is refundable and can give some low income workers up to $6,000 in refundable taxes well beyond what they have paid into the tax system for the year.

The Child and Dependent Care Tax Credit provides up to $3,000 in credit for expenses you paid for a dependent child’s care during the tax year or for a dependent disable spouses care. The credit is designed to allow the taxpayer to work while their loved one is being cared for.

The Child Tax Credit is available for each dependent child a tax payer has and reduces their taxes owed by $1,000.

The Retirement Savings Contributions Credit or the Saver’s Credit helps lower income employees save for retirement. If your income level qualifies you can receive this additional tax credit for contributions you have made to IRAs and 401Ks at work.

The Health Coverage Tax Credit helps to pay for health insurance premiums. The tax credit can pay up to 80% of your premiums. Complete IRS Form 8885 to claim this great credit.

Also take a look at the First Time Homebuyers Credit.

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