Electric vehicle tax credits can be highly valuable, but there are a lot of confusing rules regarding how they work. This guide is going to show you what you need to know about tax credits on plug-in electric vehicles. It will also answer some of the most common questions people have.
How Much are Electric Vehicle Tax Credits Worth?
The electric vehicle tax credit is worth up to $7,500. In other words, this only applies if your tax bill is worth $7,500 or more.… Read the rest
Although an incredible number of families currently claim this valuable tax break, the IRS says many more qualify for this refundable tax credit yet neglect to take advantage of it.
The guidelines for (EIC) Earned Income Credit Table were recently increased; therefore, many more families meet the requirements and can claim the earned income credit. Take a couple of minutes to ensure you don’t pass up a credit that might provide you with a bigger refund check.
How Much are the EIC, Earned Income Credit Table Amounts for 2020, 2021?
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The Earned Income Tax Credit (or “EITC” for short) is an excellent option for low-income families and individual filers to utilize for a larger return and overall cash back from the government when you file your taxes. While fairly straight-forward to understand, many tax filers do no understand how the EITC works, and if they qualify. It’s estimated that nearly 1/5 qualified applicants don’t use the credit.
This article will help you understand the basics of the earned income credit, and will also help you determine if you can claim the Earned Income Credit and if you qualify.… Read the rest
One of the most beneficial and popular federal tax credits is the Child Tax Credit. This is a nonrefundable tax credit, and it’s worth up to $2,000 per qualifying child.
Who is Considered a Qualifying Child?
The IRS considers a qualifying child to be a child that meets all of the criteria below:
- Under the age of 17 at the end of the year
- Has resided with you for more than half of the year
- Is your dependent on your federal taxes
- Is a US citizen and has a valid SSN
- Is a relative such as your child, sibling, stepchild, stepsibling, foster child, legally adopted child, or a descendant from any of the previously mentioned individuals.
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The EIC/EITC is known as the Earned Income Tax Credit. This tax credit is available for those who have a low or moderate-income.
The amount that you receive for this credit is determined based on the filing status you use and your salary for the year.
Those who qualify pay less in federal taxes and can claim the earned income credit when they file their tax returns.
Basic Requirements to Be Eligible
- You have to have a qualifying child, and they must have a social security number
- You cannot file married or file separately
- Your investment income should be no higher than $3,600
- You have to be a U.S.
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When you have young children, one of the most difficult financial burdens is paying for dependent care, but some good news is that there are some relief options when it comes time to file your taxes.
What is the Child and Dependent Care Tax Credit?
The child and dependent care tax credit is available for almost anyone who has a dependent and is working.
The dependent care tax credit is different than the child tax credit, and this article is intended to help you understand how to claim the childcare tax credit.… Read the rest
The entire tax code was reformed under President Trump’s Tax Cuts and Jobs Act (TCJA). The TCJA has changed many things about the Child Tax Credit. These new rules apply to the new tax season.
How Much do I Get Back for a Child?
Under the TCJA, the Child Tax Credit saw a substantial increase to $2,000 per qualifying child. Up to $1,400 of this amount is refundable, depending on your income. This has doubled the previous amount, and the Child Tax Credit was previously only refundable if you were also claiming the Additional Child Tax Credit.… Read the rest
The original child tax credit, known as the CTC, was first introduced back in 1997, before becoming available to claim in 1998. In the beginning, this was a simple nonrefundable credit for $400, which applied to each qualifying child if they were under the age of 17.
There have been many changes over the last 20 years, with qualifying children being worth a tax credit of $1000 per child. This was refundable for taxpayers who had at least $3,000 of earned income.… Read the rest