An IRS tax credit, applied on a dollar-for-dollar basis, is a direct reduction of the income tax you owe. Unlike a tax deduction, which lowers your taxable income, a tax credit directly cuts the amount of tax you have to pay.
Because of this, tax credits can significantly impact your taxes. It might lower your tax bill or, in some cases, result in a larger refund.
admin
Nov 20, 2020If your child is under 17, you may qualify for the Child Tax Credit (CTC). You can also receive a part of the credit which is refundable called the Additional Child Tax Credit (ACTC). In order to receive the CTC, your qualifying child must have a social security number. After tax year 2018, taxpayers can […]
adminNov 20, 2020If you paid child care expenses for a qualifying individual in order for you and your spouse to work or look for work, this credit is for you. You cannot take this credit if your filing status is married filing separately. Your total expenses can’t be more than $3,000 per qualifying individual. As long as […]
adminNov 20, 2020If you and your family are paying premiums for qualified health insurance programs, you may be eligible for this credit. This credit is available from 2002 to 2013 and extended for 2019. The Health Coverage Tax Credit (HCTC) is a tax credit for taxpayers who are atleast 55 to 65 years of age who paid […]
adminNov 20, 2020This credit is a nonrefundable credit If you paid the Alternative Minimum Tax (AMT) in a previous tax year. However, you can only claim this credit in the year when you don’t have to pay the AMT. There is an option for a credit carry forward for future years, but there isn’t one to reduce […]
adminNov 20, 2020This credit is targeted to lower income individuals to assist them in affording homes. You must first have a qualified Mortgage Credit Certificate (MCC) from your state or local Housing Finance Agency when you purchased your main home. You may qualify if you paid $2,000 per year. You can claim both the mortgage interest deduction […]
adminNov 20, 2020If claimed the First-Time Homebuyer Credit, you may have to make an annual repayment installment. This is located on your 2011 tax return. You can use the IRS.gov website to check your repayment obligation. You will need your social security number, date of birth, and complete address. As a reminder, the repayment is for people […]
adminNov 20, 2020The first time home buyer credit (Form 5405) was for taxpayers who purchased homes between April 8, 2008 to September 30, 2010. This credit is not available for those who purchased homes after 2010. Although this credit ended in 2010, those who bought homes before then can still claim the credit. You can claim this […]
adminNov 20, 2020You can claim the residential energy property credit if you made energy saving improvements to your main home located in the United States. Here are some examples of qualified properties: solar electric property solar water heaters geothermal heat pumps small wind turbines fuel cell property (this is limited to $500 per each half kilowatt of […]
adminNov 20, 2020You can report your plug-in electric motor vehicle to receive a credit by the IRS. Previously, this credit was only applied to passenger vehicles and light trucks and vehicles purchased after December 31, 2009. The good news is that this credit for qualified two-wheeled plug-in electric vehicles is now able to cover vehicles acquired in […]
adminNov 19, 2020You can qualify for an education credit if you paid the cost of higher education. It reduces the amount of taxes you owe on your return and could lead to a refund. There’s two education credits; the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). You can claim an education credit if […]
Sign up with your email to receive latest updates.
