Tax credits are great! They reduce the amount of tax liability on your refund allowing you to receive a higher refund or pay a lesser amount of tax. There are seven types of tax credits available as follows:
- Earned Income Credit
- Child and Dependent Care Credit
- Adoption Credit and Adoption Assistance Programs
- Excess Social Security and RRTA Tax Withheld
- Retirement Savings Contributions Credit
- First-Time Homebuyer Credit
- The Premium Tax Credit
Earned Income Credit is a refundable tax credit for individuals who worked the previous year for a low or moderate income below $53,505. For the full details regarding eligibility for the EIC Tax credit please contact us directly.
Child and Dependent Care Credit is a tax credit provided if you paid expenses for child care to allow you and/or your spouse to work/look for work. The credit is a percentage of work-related expenses paid to the provider for the care of your child/children.
Adoption Credit and Adoption Assistance Programs provide a tax credit for qualified adoption expenses for the child/children and exclusion on income from employer assistance. Qualified adoption expenses include:
- Reasonable and necessary adoption fees
- Court costs and attorney fees
- Traveling expenses
- Other expenses directly related to the legal adoption of the child/children
The maximum amount for the 2016-year per child is $13,460.
Excess Social Security and RRTA Tax Withheld This is a rare instance when your employer withholds too much Social Security Tax or your Railroad employer withholds too much RRTA tax. In the event this has happened contact your employer to have them adjust the tax for you. If they are unable to do so please contact us to assist you.
Retirement Savings Contributions Credit Contributions that you make to an eligible retirement fund may qualify you for a tax credit. Tax credits vary depending on filing status and adjusted gross income, to see if your contributions qualify please contact us directly.
First-Time Homebuyer Credit You may be eligible for a tax credit for purchase on a home that is considered your primary residence from years 2008-2011. Eligibility depends on the year in which the home was purchased. Federal employees and members of the military are eligible for specific benefits upon eligibility of the credit. Please contact us to see if you qualify.
The Premium Tax Credit offers a tax credit to low to moderate-income families who purchase health insurance within the marketplace. This tax credit is refundable and has the ability to make premium payments directly to the health insurance provider. Please contact us directly to inquire about your eligibility.
If you feel that any of the above tax credits apply to you please don’t hesitate to call us at 305-400-8237 to determine your eligibility as well as help with ALL of your tax needs.