Category Archives: Credits
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 moreEducational tax credits can help taxpayers save when they file their return if they incurred any education-related expenses during the year. However, as the student in the following situation discovered, educational tax credits are based on what you actually paid, not what was billed. The Situation In 2010, the full-time Hampton University student registered for […]
— Read moreOnce known as the Hope College credit, the American Opportunity tax credit can save taxpayers up to $2,500 on their 2016 return. Remember: A tax credit is a dollar-for-dollar reduction of your taxable income. In theory, the AOTC translates to $2,500 from the government each year for each qualifying college student in your household. While […]
— Read moreIf you or your dependent is enrolled in undergraduate and graduate school, you may benefit from the Lifetime Learning Credit, which covers up to $2,000 in education expenses. In 2016 the rules for the Lifetime Learning Credit haven’t been altered from other years. Not considering any phase-outs, the credit is still worth 20% of qualifying […]
— Read moreIf you have qualifying education expenses you may be able to deduct them using the American Opportunity Credit. This credit covers the first $2,000 of education expenses that qualify, plus 25% of the next $2,000 for a total maximum credit of $2,500 annually. Who is eligible for the credit? If you pay for qualifying education […]
— Read moreEven if you received unemployment compensation during the year, you may still be able to claim the Earned Income Credit. However, you’ll need to meet a few requirements first. The EIC, as its name suggests, require you to have “earnings”, sourced from the act of providing services in exchange for compensation – for example: employment. […]
— Read moreTax credits can be a great way to save some cash when it’s time to file your return. Credits like the Lifetime Learning Tax Credit (LLTC) are different from a deduction because it reduces the amount of taxes you owe, dollar-for-dollar. Deductions only subtract from the amount of income you are taxed on. With credits […]
— Read moreThe Earned Income Tax Credit is refundable, allowing eligible low to moderate income workers the opportunity to reduce their taxable income. If its reduced below zero, the taxpayer may receive a refund of the excess amount of the credit. The credit is adjusted each year to account for the cost of living, as well as […]
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