4 tax credits that can boost your refund
A dollar-for-dollar reduction of taxes owed is a tax credit. Several tax credits if you claim one and are eligible, are refundable. You can receive the remainder of it in a tax refund even though your tax liability is zero.
Here are 4 refundable tax credits you should consider on your two-thousand eleven federal income tax return to increase your refund:
1.For people earning less than forty-nine thousand and seventy-eight dollars from wages, self-employment or farming there is the Earned Income Tax Credit. Age, Income, and the amount of qualifying children decide the credit amount, up to five-thousand seven hundred and fifty-one dollars. Workers who do not have children might qualify too.
IRS Publication 596.
2. Costs paid for the care of children under the age of thirteen who qualify, or for a disabled dependent or spouse; while you are looking for work or working, is called the Child and Dependent Care Credit.
IRS Publication 503.
3. The Child Tax Credit has a maximum credit of one-thousand dollars for every qualifying child. You can claim the Child and Dependent Care Credit and this tax credit.
IRS –Publication 972.
4. The Retirement Savings Contributions Credit is intended to aid workers with low-to-moderate incomes to save for retirement.
IRS Publication 590,(IRAs).
There are plenty other tax credits that might be available depending on your circumstances. Check all your information carefully for more tax credits. Go to www.irs.gov or call 800-829-3676). Check out turbo tax too.
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