In 2013 the IRS expects that a full 75% of all taxpayers will get a refund. If that’s not enough impetus to start preparing your taxes now we don’t know what is. The fact is, there’s no time like the present to start preparing your taxes and indeed the quicker you file the quicker you’ll get that money.
With that in mind here’s a list of some of the biggest tax credits that you may qualify for. Take a look and make sure that, if you can deduct it, you do. The best part is that, because they actually reduce your taxes dollar for dollar instead of being based on your tax bracket, they are some of the best tax deals possible. Enjoy!
The Earned Income Tax Credit or EITC was put into effect for moderate to low income workers and also working families. The limit for 2012 is $50,270.00 for families and $46,060.00 for single filers. The maximum credit no matter how you file is $5891.00 and you can file using Schedule 8812 if you want to figure in your additional credit for your child tax credit (next).
For any child that you have living at home who’s under 17 at the end of the year you will qualify for a $1000.00 child tax credit. An added benefit is that you can claim this credit and also claim the credit for child and dependent care expenses as well. This tax credit is available to people who have to pay someone to care for their children under 13 years of age so that they can get to work every day. This credit comes with a limit of 20 to 30% of the childcare expenses and also depends on your income.
Another credit for moderate to low income workers is the Retirement Savings Contribution Credit which was designed to help these people save enough money for retirement. Depending on your income and your spouse’s income you may qualify for a credit of up to $1000.00 per person.
Lastly there’s the Energy and Appliance Tax Credit which, if you made any significant energy saving improvements to your home in 2012, may qualify you for reimbursement up to 10% of the upgrade’s cost or a maximum of $500.00. New windows, efficient furnaces and water heaters, electronic thermostats and low energy air conditioners should qualify you for this credit so be sure to keep all of your receipts and any other paperwork that will prove you made the improvements.
Of course it always helps to talk to a tax professional to make sure that you didn’t miss anything because there certainly are other tax credits, exemptions and other money saving options that are available to the average taxpayer.