Tax credits and deductions are meant to help taxpayers easily reduce their tax bills and maximize on savings. While tax credits can be more advantageous as they are subtracted from ones tax liabilities and reduces ones tax bill dollar-for-dollar.
Deductions, on the other hand, are subtracted from ones total taxable income and do not provide a dollar-for-dollar figure benefit. American Tax service, a blog dedicated to helping Americans file their taxes right has just published a post highlighting seven of the most-missed tax credits and deductions and why any smart taxpayer should not overlook any one of them.
First on the list is the Earned Income Tax Credit (EITC). It is a refundable tax credit and should be the number one credit any low-income family should take advantage of. The EITC can range from $519 for no qualifying children to $6,431 for three or more children that qualify. Next on the list is the child tax credit which is a non-refundable tax credit that provides up to $2,000 per child this tax season.
The other tax credits listed on the site are:
- The Non-Child Dependent Credit
- The Child Tax Credit and Dependent Care Tax Credit
- Education Tax Credits
- The Savers Credit – Retirement Savings Contribution Credits
- The Healthcare Premium Tax Credit (PTC)
While finding out the tax credits and deductions you qualify for is a great thing, knowing how to claim them is surely the most important thing. The American Tax Service recommends using H&R Block online software to discover and claim all the Tax Deductions and Credits you may qualify for. H&R Block is easy to use and will only ask simple questions to ascertain the tax credits and deductions you qualify for therefore ensuring you get the largest refund possible.
For more information about the New Tax Credits and Deductions 2019, please visit, https://americantaxservice.org/new-tax-deductions/