Don’t leave money on the table!Monday, February 8th, 2016
By now, you should have received all of your tax documents and you can begin your tax preparations. Whether you do them yourself, take advantage of the free tax services in our area (FMI: http://www.curtislibrary.com/2016/01/31/free-tax-preparation/) or you work with a professional, you want to always ensure that you aren’t leaving money on the table.
What do I mean by that? I mean that you want to take advantage of all the tax credits and deductions you may be entitled. The availability and amounts change every year, so it is important to speak to a professional if you have any questions. You can also refer to the IRS website, which has a current list of credits and deductions available for the 2015 tax year.
According to the IRS website, here are some important credits and deductions that may apply to you.
The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.
The Child Tax Credit, A tax credit of up to $1,000 per qualifying child. If you claim the nonrefundable child tax credit but do not qualify for the full amount, you may also be able to take the refundable additional child tax credit. You must meet various criteria regarding the qualifying child.
Student Loan Interest Deduction, You may be able to deduct up to $2,500 of the interest you paid on a qualified student loan. The deduction is claimed as an adjustment to income.
To learn more about taxes and how we can help, play our February scavenger hunt! It is fun and easy. Plus, you will be entered into a monthly and grand prize drawing.