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Ten tax credits and deductions that can save you up to $47

While you're gathering the necessary paperwork to file your federal tax returns, be sure to look out for tax credits and deductions that can save you a lot of money. The Sun.

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The filing period for 2021 tax returns has already begun. Before submitting a document to the Internal Revenue Service (IRS), read a list of tax credits and deductions that can reduce your tax bill. The tax credits described below can save you up to $47 in total.

Tax credit for children

If you opted out of the Advance Child Tax Credit (CTC) in 2021, you will receive the full Child Tax Credit when you file your 2021 tax return. It is $3600 or $3000 per child depending on age.

If you received CTC upfront in 2021, it was only half the amount, up to $1800. You can claim the remaining half when you file your 2021 tax return.

On the subject: The tax season has begun: how to prepare a declaration without errors and quickly get a tax refund

Be sure to look for letter 6419 from the IRS that lists the payments you received on this loan so that you can report them correctly on your return.

Child care loan

You can get a child and dependent care tax credit if you used the money to pay for the services of a qualified nanny or carer. At the same time, you needed babysitting services in order to be able to go to work or look for it.

В In 2021, this loan can show expenses up to $16, but it only reimburses you 000%, that is, no more than $50. You can get the maximum if you have two or more children. If you have one child, you can count on a loan of up to $4000.

Adoption loan

Adoption tax credits offset your personal adoption costs and also exclude from your taxable income financial adoption assistance provided by your employer (such assistance is available under some programs).

The loan is non-refundable, which means you cannot get it in cash, but it can be used to pay off any tax debts. If the loan exceeds your tax liability for that year, it can be carried forward for up to five years.

The maximum adoption credit for the 2021 tax year is $14 per child.

Recovery rebate credit

If you did not receive your third installment of pandemic benefits, or if you received less than the full amount, you may be eligible to receive this money after you file your 2021 return. The fact is that coronavirus payments were calculated based on declarations for 2020, but in 2021 your income could be lower, which means that you were entitled to large amounts of payments.

Earned Income Tax Credit

To qualify for an Earned Income Credit, you must have earned income (explained below) and meet certain levels of your Adjusted Gross Income (AGI).

Earned income includes all taxable income and wages you receive from working for someone else, yourself or your own business.

The maximum loan amount you can qualify for in 2021 is $1 if you have no children and up to $502 for parents of three or more eligible children.

Loan for the elderly or disabled

You may qualify for this loan if you are over 65 years of age or have retired early due to a permanent and total disability. The sum of this toredita varies from $3 to $750.

Lifetime study loan

A student loan is designed to offset your tuition costs. It is paid to students of certain institutions and requires the fulfillment of a number of conditions. This loan can be used to pay for undergraduate, graduate and professional courses.

There is no limit to the number of years you can apply for a loan. You can compensate up to $2 per tax return.

Credit opportunities (American opportunity tax credit)

This loan pays for education (yours or your children's) during the first four years of college or other higher education. You can get no more per year $2500 per student.

If the loan brings your tax debt to zero, you can receive 40% of the remaining loan amount in cash (this payment cannot exceed $1000).

The Opportunity Loan amount is 100% of the first $2000 of eligible education expenses. Then you can get 25% off your next $2000 spending.

Loan for energy efficient housing

An individual can claim a tax credit to cover up to 10% of the cost of energy efficiency modifications to their home.

Compensable modifications include:

  • Energy efficient exterior windows, doors and skylights.
  • Roofs (metal and concrete) and roofing products.
  • Insulating materials and their installation.
  • Energy efficient heating and air conditioning systems.
  • Water heaters (natural gas, propane or oil).
  • Biomass stoves.

Credit cannot exceed $500.

Saver's credit

The Contributor Tax Credit is available to taxpayers who contribute money to their retirement account during the tax year. It used to be called a retirement savings contributions credit.

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Credit amounts are up to $1000 for individuals filing individually and up to $2000 for couples filing jointly.

The loan amount may vary and is dependent on the taxpayer's adjusted gross income and contributions.

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