We all know people who have lost a job or seen their business suffer during this protracted economic downturn. Job losses from the recession are estimated at nearly 8 million, resulting in an average nationwide unemployment rate at nearly 9.5%. The Earned Income Tax Credit (EITC) was created to help low-income workers, self-employed individuals, and [...]
Tax Credits
The vast majority of tax credits you can apply for on your federal return are non-refundable, meaning that they cannot exceed your total tax liability. (Refundable credits can, resulting in payment from the government.) These credits include the Lifetime Learning Tax Credit, the Retirement Saver’s Tax Credit and the Child and Dependent Care Credit. The [...]
When figuring out which tax credits you will be able to claim on your income tax return, it is important to know whether those credits are refundable or non-refundable. These terms mean something different than a non-refundable purchase in a store. Non-refundable tax credits are those that cannot exceed your tax liability. Once you owe [...]
No matter the year, there are many tax credits that you can take advantage of. Even if you do not qualify for any of them, it is important to know what they are. Tax credits can help you pay for everything from going to college to raising a family and much more. Unfortunately, thousands of [...]
A tax credit is generally much more useful than a tax deduction or write-off, because it decreases your tax liability dollar for dollar, while a deduction only lowers the amount of income you are taxed on. Some credits, called refundable tax credits, can result in money from the government at tax time, and even non-refundable [...]
As you know, tax credits and tax deductions can help reduce your overall income tax liability. Every year, millions of taxpayers search for credits and deductions that can help them save money. While you should take advantage of as many of these as possible, don’t overlook the fact that tax credits and deductions are not [...]
Many people are under the impression that tax credits and tax deductions are the same thing. While they are similar in many ways, there are several key differences that you need to be aware of. Most importantly, tax credits help reduce the amount of tax that you owe. On the other hand, a tax deduction [...]
Ask anyone and they will surely tell you they pay too much in taxes. Fortunately, the federal government and many states have responded by creating a means to rebate taxes in the form of tax deductions and tax credits. Tax credits are not deductions to your income; they actually reduce the amount of income tax [...]
Ask anyone and they will surely tell you they pay too much in taxes. Fortunately, the federal government and many states have responded by creating a means to rebate taxes in the form of “tax credits.” Tax credits do not reduce your taxable income; they actually reduce the amount of tax that you owe. There [...]
