February has Valentine’s Day, March has Easter and St. Patrick’s day and April Showers might bring May Flowers. Sadly there is one season that continues to “rain on our parade,” and that, of course, is TAX season. BLAH!
Taxes always stress us out. I pay taxes quarterly for my blog, and we pay taxes at tax time for our jobs. We do everything “by the book” and pay a tax specialist to make sure we don’t miss anything including tax credits, many of which a lot of consumers are not aware of.
There are so many things consumers don’t know about when filing taxes. Ash Exantus, Financial Empowerment Coach of BankMobile- America’s first free mobile bank is here to help. Below please find Ash’s 10 most important tax credits that consumers should know when filing taxes.
Earned Income Tax Credit: One of the most lucrative tax credit that people should be aware of. It is available to working people with low to moderate income and can be worth almost $7,000.
The Child and Dependent Care Credit: This is an important credit for those who want to deduct cost associated with qualified child care or caring for a parent.
The American Opportunity Tax Credit: Gives students of higher education a credit for tuition, any mandatory enrollment fees and course material during the first four years.
The Lifetime Learning Credit: This allows you to earn up to $2,000 for mandatory enrollment fees and tuition for eligible educational institutions if you meet certain income guidelines ($65,000 or less if single, $130,000 or less for married couples filing jointly).
Premium Tax Credit: If you have health insurance from the health insurance marketplace then you may qualify for a credit.
Savers Credit: Allows those who are low and moderate income workers receive a credit to help save toward retirement.
Health Coverage Tax Credit: This credit pays 72.5% of qualified health insurance premiums for those individual and families that qualify.
Mortgage Interest Credit: Allows some owners to deduct a portion of mortgage interest paid to the bank.
Child Tax Credit: This gives a tax credit of up to $1,000 per qualifying child.
Credit for the Elderly or the Disabled: Gives those 65 or older or any permanently disabled retired person a tax credit that can be worth up to $7,500.
We were aware of some of these, but not all of them.
Sadly, we are losing one Child Tax Credit now that our daughter is 18 years old.
I would suggest you speak to your tax person about these tax credits and whether or not you quality for them.
Kimberly
*I was not compensated for this post. I posted this for the benefit of my site readers.