Are You Eligible For Any Of These Tax Credits?
By Richard A. Chapo, Fri Dec 9th
Taxpayers should consider claiming tax credits for which theymight be eligible when completing their federal income taxreturns. A tax credit is a dollar-for-dollar reduction of taxesowed. Some credits are refundable – taxes could be reduced tothe point that a taxpayer would receive a refund rather thanowing any taxes. Below are some of the credits taxpayers couldbe eligible to claim:
Earned Income Tax Credit
This is a refundable credit for low-income working individualsand families. Income and family size determine the amount of theEITC. When the EITC exceeds the amount of taxes owed, it resultsin a tax refund to those who claim and qualify for the credit.
Child and Dependent Care Credit
This is for expenses paid for the care of children under age 13,or for a disabled spouse or dependent, to enable the taxpayer towork. There is a limit to the amount of qualifying expenses. Thecredit is a percentage of those qualifying expenses.
Adoptive parents can take a tax credit of up to $10,390 forqualifying expenses paid to adopt an eligible child. A credit ofup to $10,390 may be allowed for the adoption of a child withspecial needs even if you do not have any qualifying expenses.For more information, see Pub. 968, Tax Benefits for Adoption.
Credit for the Elderly and Disabled
This credit is available to individuals who are either age 65 orolder or are under age 65 and retired on permanent and totaldisability, and who