Posts Tagged ‘tax credit’
The Earned Income Tax Credit – Not As Complex To Apply For As You Think
Posted by admin in Tax Credit Vs Tax Deduction on February 9th, 2011
The majority of tax breaks are usually such a hassle applying for and getting approved for that more often than not they seem like they’re more trouble than they’re actually worth. However, there is one exception and that is the earned income tax credit. This is especially so for families that are in the lower-income-bracket as this particular credit actually returns a large portion of the taxes they pay, right back to them.
A refundable credit like the earned income tax credit, will actually fix a certain sum that you are due and if it happens to be an amount that’s larger than what you paid the IRS in the first place, then you can actually stand to make a profit out of it. However, there is a downside to this and that is that filing for this can be quite tedious and somewhat complex.
To get past this complexity, the IRS has an online help wizard, called the Earned Income Tax Credit Assistant, which basically breaks the whole tedious process down to a few simple steps. If you can satisfactorily answer the questions it asks you, then it will help you see if you qualify for the credit, and also how much you could possibly stand to gain.
Many people think that you can only claim this credit if you have children, but that’s not true. If you have children you will get back a larger amount, but you can still get something, even if you don’t have children.
Children, however, do play a prominent part in the calculating of the earned income tax credit. The age of the child matters and what exactly the relationship is that you have to the child (adopted parent, foster parent, or other) and whether the child actually lives with you, and so on. Should the child be a full-time student, then they allow them in their reckonings as long as they are under the age of 24.
You are able to claim an earned income tax credit on your personal tax return, no matter which it is, either a 1040, 1040A or 1040 EZ.
Hopefully this has helped. Before you hand over a lot of your hard earned cash in taxes, make sure you look into all the allowable tax deductions that you can claim and also maybe check out the IRS’s online help wizard and see if you are eligible for the earned income tax credit.
Tax Deduction or Tax Credit for Compact Fluorescent bulbs into personal residents?
Posted by admin in US Tax Questions on August 7th, 2010
Does anyone know if there is a tax credit or deduction for compact fluorescent bulbs installed into personal residents? If so, could you tell me the tax code or tell the form I need to fill out.
Thank you in advance,
Philly Guy.
Tax Breaks for Your Education Expenses
Posted by admin in US Tax Questions on July 16th, 2010
Susan Paul, a tax enrolled agent with years of advanced tax experience, walks you through the many ways your education can save you money on your taxes. The workshop was held at Manchester Community College on March 5, 2009. Susan illustrated the various ways that college educations costs can be alleviated by tax breaks.
Recovery: Energy Tax Credits-Claim It – January 2010
Posted by admin in US Tax Questions on May 4th, 2010
Taxpayers who are making energy efficient improvements to their home or who are purchasing certain alternative energy equipment and vehicles will want to watch this video. This video has all the details on how you can reap the benefits of these purchases when you file your 2009 tax return.