Five tax credits for a bigger 2017 refund
Tax credits help reduce the amount of tax you owe. A refundable tax credit allows you to reduce your overall tax liability and it can also result in a refund.
- Child Tax credit: You are eligible to receive up to $1,000 on your tax return. You are required to file form 8812.
- American opportunity tax credit: As part of this tax credit, you are eligible to receive up to $2,500 per eligible student & can help offset the costs you pay for education expenses.
- Retirement savings contributions: It helps low to moderate income families to save for their retirement. You may be eligible if your income is below the set threshold and you contribute to IRA or retirement plan at work.
- Earned Income tax credit: This is a refundable tax credit and you may be eligible if your income was below $50,270. Eligibility is based on filing status, children, and income limit.
- Child and dependent care credit: This credit is available if you have children and paid for their daycare expenses (under the age of 13).
Make sure you discuss your eligibility with your tax preparer and ensure you utilize these credits to reduce your overall tax liability.