A common trait among Americans is that many of them will qualify for tax credits that they’re not even aware of. We’re here to change that! Discover everything you need to know about how tax credits can impact your tax returns in this helpful guide. Schedule a consultation with A. Roberts & Associates today to experience the knowledge and wisdom of Anthony Roberts, including the art of utilizing tax credits to your advantage:
What Is A Tax Credit?
When you file your taxes, your tax return amount is ultimately the result of subtracting what you owe and what you’ve paid. Tax credits are able to directly influence your tax liability by taking away from your income tax. In layman’s terms, tax credits can lead to bigger refunds. This means that tax credits are a good thing for your bank account, which is why we want you to know how to qualify.
- Get Rewarded For Reducing Energy Usage
As we enter the age of energy efficiency and supporting a greener environment, energy-related tax credits are becoming increasingly popular. A perfect example is the solar tax credit which can reimburse you for the installation cost of a qualifying solar device like solar panels, solar water heaters, and various solar energy systems. There are even specific tax credits for purchasing an electric vehicle, regardless of whether or not you buy it used.
- Earn Bonuses As A Parent Or Guardian
Parents and guardians alike can qualify for various tax credits simply by taking care of a child (or children). A popular one is the Child Tax Credit (CTC) which offers a tax break for households that have minors below 17 years of age and generate a certain income. There is also an adoption credit to encourage individuals or couples to consider adopting as an alternative to having a child themselves.
- Give And Receive With Charitable Donations
Individuals who love to give can be rewarded with a tax credit for their charitable gifts which can count as either monetary or tangible donations such as clothes, food, and more. Before you give out your next donation, you can ask your trusted financial advisor about tax-friendly ways to donate so that everybody can get the most out of your kind act, including yourself.
- Capitalize On Your Quest For Education
Students are always well-rewarded for striving for higher education, and there are many tax credits to reflect that. Some of them let you claim expenses on necessary school expenses while others target the interest on student loans. Some educational tax credits that you may qualify for include the American Opportunity Tax Credit (AOC) and the Lifetime Learning Credit.
- Find Relief In High Medical Expenses
If your medical expenses greatly exceed your adjusted gross income, you might be able to find relief in tax credits. Those with Health Savings Accounts (HSA) may also be able to deduct their contributions for greater returns.
- Safeguard Your Retirement Funds
Almost every working taxpayer has some kind of retirement fund, but did you know that you might qualify for Saver’s Credit? You could be saving a certain percentage of contributions made to an IRA or 401(K) account. Even if you don’t qualify, there are ways to reduce your taxable income with a 401(K).
Find Out What Tax Credits You Qualify For, Consult With A. Roberts & Associates! There’s a seemingly endless list of available tax credits, and we’ve only scratched the surface. To see what you may qualify for, contact A. Roberts & Associates to schedule a consultation and we’ll help you find the best