Newsletter, March 2008
Saturday, March 01, 2008
Are You Entitled to a Tax Refund?
Tax credits can help you pay part of the cost of raising a family, going to college, saving for retirement, making energy-saving improvements to your home and getting daycare so you can work or go to school. Each year, many taxpayers overlook them, even though they often qualify for one or more of these credits. Though both tax deductions and credits can save you money, they do it in different ways. A deduction lowers the income on which tax is figured, while a credit lowers the tax itself. Take time now to review your records and see if you qualify for one of these popular but often overlooked tax credits. Throughout this newsletter, we will describe the following tax credits so you can better understand their value to you and your family: Earned Income Tax Credit (EITC); Child Tax Credit; Credit for Child & Dependent Care Expenses; Education Credits; Saver’s Credits; and Energy Savings Credit. These credits can increase your refund or reduce the tax you owe. Usually, credits can only lower your tax to zero. But some credits, such as the EITC and the child tax credit, can actually exceed your tax and provide you a refund. Though some credits are available to people at all income levels, others have income restrictions, such as the EITC, saver’s credit, education credits and child tax credit. If you qualify, you can claim any credit, regardless of whether you itemize your deductions. Please call NESDCAP today to schedule an appointment to have your basic income tax return prepared for FREE.
Category: News Categories, From the Office