Going green is not just beneficial for the environment; it’s also a great way to boost your finances. Making energy-efficient upgrades to your home can not only reduce your energy bills but also offer some sizeable tax savings.
The Federal government wants to encourage citizens to go green, which is why they provide a range of energy tax credits.
The earned income credit is one of the most valuable credits for those with low or moderate incomes. To claim it you will need to file an income tax return, even if you don’t necessarily owe anything in taxes.
The Earned Income Tax Credit (EIC) is a credit that is for low to moderate-income taxpayers to get ahead and have more money in their pockets. It can boost refunds significantly if you can meet the eligibility guidelines to claim it.
For example, if you are employed, but your income is considered “low” by the IRS, you may be able to claim the earned income tax credit, which currently has a maximum credit amount of $6,660.
Below you will find the EIC table chart and some of the most common questions that taxpayers have about the Earned Income Credit.… Read the rest
An increasing number of people are turning to TurboTax to get their income tax prepared and filed every year. They take all the hard work and stress out of tax form preparation and will always get you the largest refund.
As you go through the process of importing income and expense information into the TurboTax Online Software, you will see possible tax deductions and credits that you may qualify for, and how much money you can save on your tax bill.… Read the rest
The Additional Child Tax Credit is an important tax credit that every parent should be aware of.
But what you must keep in mind is that sometimes you can’t take advantage of the Child Tax Credit because the value of the credit is more than you owe in income tax. If you can’t benefit from the credit fully you can claim the Additional Child Tax Credit.
This can give you a payment for the part of the Child Tax Credit you couldn’t take off against your taxes for the reason mentioned above.… Read the rest
Getting a tax credit is almost as good as not having any taxes to pay at all. Tax credits allow you to deduct sums of money from your taxes. This is better than getting a deduction because it not only reduces your taxable income it gives you a credit. For example, those in the 28% tax bracket would save $280 in taxes. However, you would need $3,571 in deductions to save $1,000 in income taxes.