Tax Credits will reduce the amount of tax you owe the IRS dollar-for-dollars. If you don't owe the IRS, Tax Credits are occasionally refundable (like the First Time Homebuyer's Tax Credit). You'll need the following to claim most tax credits:
-Tuition receipts and expenses
-Adoption-related expenses
-The Social Security numbers and birth dates for non-dependents who might qualify you for the Earned Income Credit
- Child and Dependent Care Information, such as proof of care expenses paid, and care provider's address, social security number, and employee ID number
-Retirement plan contribution statements
-Receipts and manufacturer's certifications for energy-efficient purchases that qualify
-Records of any foreign taxes paid
-Manufacturer's certifications fro hybrid and fuel efficient vehicles
This Five Part Complete Tax Filing Guide is concluded today. I've covered all the ways you can claim deductions and credits to save big with the IRS, and what you need to claim them. The Five Part Complete Tax Filing Guide may be concluded, but I'll continue to write about the latest tax filing news, advice, and tips all tax filing season. For now, here's the previous four chapters:
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The Complete Tax Filing Guide Part 1- Documents Determining Income-
The Complete Tax Filing Guide Part 2- Documents for Common Tax Deductions-
The Complete Tax Filing Guide Part 3- Itemized Deductions-
The Complete Tax Filing Guide Part 4- Basic Standard Deductions for 2009