Use These Tax Credits This Tax Season

When filing taxes this year, make sure that you use every credit you qualify for so you can minimize your tax bill. Some of the tax credits that you would not like to miss are:
1.         The Child and Dependent Care Credit

If your child is under 13 and spends time at a day care or a day camp so that you can work, you can claim this tax credit of up to 35% of your qualifying costs for the care. An individual taxpayer can claim up to $3,000 of your total costs. Two qualifying individuals can claim up to $6,000 of the total costs for the care.

You can also claim this tax credit for a disabled spouse, a dependent, or a spouse or dependent who lived with you for more than 6 months in a year and who was physically or mentally incapable of self-care. If you are married and filing jointly or if you or your spouse are paying for the care of your child/children, you can claim this tax credit. 

2.         The Child Tax Credit

This tax credit can be claimed in addition to the Credit for the Credit and Dependent Care Credit. This credit can reduce your taxes by $1,000 for each qualified child. A child can qualify if they are less than 17 years of age in 2013. It is a non-refundable credit. 

The Additional Child Tax Credit is a refundable tax credit and may be used by those who do not owe any taxes. Claiming this credit on their tax return will get them a refund.

3.         The Saver’s Credit 

This tax credit, also called the Retirement Savings Contribution Credit, encourages taxpayers to save for their retirement. You qualify for this credit if you contribute to an IRA or a retirement plan offered by your employer, and your income levels for 2013 are:

           Married filing separately or a single taxpayer with income up to $29,500
           Head of household with income up to $44,250
           Married filing jointly with income up to $59,000

This tax credit can be worth up to $2,000 for married couples filing a joint return and worth up to $1,000 for single taxpayers.

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