Don’t Miss Out on These Tax Credits
Don’t Miss Out on These Tax Credits
Most people know about tax deductions. Especially taxpayers who like to itemize. However, many taxpayers are not as aware of the numerous tax credits available to them every year. And missing out on these credits can cost you a lot of money. In fact, for many families, tax credits make the difference in whether or not they have tax debt, or they get a refund. In addition, unlike many long-standing deductions that got cut or reduced in the Tax Cut and Jobs Act, most of the most popular tax credits are still alive and strong. But it’s up to you to make sure you take advantage of them. What Is a Tax Credit?
But, before we get into to the most popular tax credits, let’s briefly explain what a tax credit is. Unlike a tax deduction, which reduces the amount of taxable income you have, a tax credit increases the amount you will be refunded, or decrease the amount you will owe, dollar-for-dollar. In other words, tax credits are even more valuable than deductions in most cases.
Most Common Tax Credits
So what are the most common tax credits available to you during this tax season? Let’s take a look:
Child Tax Credit – perhaps the most popular tax credit is the child tax credit. This has always been a help for families with children, but the Tax Cut and Jobs Act has doubled the amount of the credit. This is a refundable credit and could be worth as much as $2,000 per child under the age of 17.
Other Dependents Credit – this credit could be worth up to $500 per dependent adult child or elderly parent, but it’s a nonrefundable credit.
Child and Dependent Care Credit – This credit is aimed at helping parents who work, pay for childcare. If you qualify for the credit, it is worth 20 percent to 35 percent of your qualifying expenses.
Earned Income Credit – this is another popular tax credit, but it’s only available to those in low-income brackets. If you have dependent children and your income is within the thresholds, you could qualify for as much $6.431. But if you have investment income of more than $3,500 you automatically do not qualify.
Retirement Savings Contributions Credit – this credit is for those taxpayers that save money for retirement. By contributing to what’s called a tax-advantaged retirement account, you could actually earn free money. This credit is worth as much as $2,000 in free retirement savings for taxpayers that qualify.
Plug-in Electric Vehicle Credit – this is another tax credit that’s growing in popularity. As more people purchase qualifying plug-in electric vehicles, the more this credit is coming in handy. It ranges from $2,500 to $7,500 per vehicle. But it starts phasing out for each manufacturer after they sell at least 200,000 qualifying vehicles.
Get Your Tax Credits
Tax credits can be a big boost to your tax savings. So make sure you don’t miss out on any of these opportunities. While deductions certainly help reduce your overall tax bill, tax credits can actually give you free money. And everyone likes free money.
We hope you found this article about “Don’t Miss Out on These Tax Credits” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
In this episode we cover, how Joe Manchin blocks The Build Back Better Bill again, Hungary wants to be left alone, more proposed Low Income Housing Credits, and the 3.8% tax expansion proposal is criticized by the real estate industry. Tax Update with Ron · Episode 22, Joe Manchin Blocks The Build Back Better Bill…
I have some exciting American Dreams Show news. The host, Alan Olsen has written the first book based on the AD interviews! Other books have cited one or more of the interviews, but this one goes into far more details. Below is a letter from author himself describing the book… From Alan… Dear Friend, I…