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Important Things to Know About Tax Credits; The Internal Revenue Service (IRS) recommends each taxpayer in the United States to check their eligibility for a list of significant tax credits. Black Ink makes its clients tax ready with the quickly approaching tax filing season as we not only bring the latest IRS taxation news in USA for our readers but we also provide accurate tax preparation & filing services throughout United States from New York to New Jersey. If you are a taxpayer in the United States, then get ready for the upcoming tax filing season 2020 as the IRS is reminding for the second time in a series along with steps to take now for tax filing season 2020 in USA.
Tax Credits for Taxpayers in USA :
Check the given list of beneficial tax credits for business and individual taxpayers in the United States that can be taken into account by them for a comparatively lower tax bill. These tax credits include Important Things to Know About Tax Credits:
1. Child Tax Credit:
- Child Tax Credit can be claimed by the taxpayers if they have a qualifying child under the age of 17 as well as meet other qualifications discussed later.
- The maximum amount of Child Tax Credit in USA is $2,000 per qualifying child. Furthermore, for each qualifying child, up to $1,400 of that amount can be refundable.
- A taxpayer can avail a refund with the Child Tax Credit even if they do not owe any taxes, same as that of Earned Income Tax Credit (EITC).
- A valid Social Security number must be issued to the qualifying child before the due date of the tax return, together with extensions. It means 15th April, 2020 is the date for tax year 2019 and 15th October, 2020 is the date if the taxpayer gets a tax-filing extension.
- A reduction or phase out is seen in case of the amount of the Child Tax Credit that begins at $400,000 for married couples filing jointly, or $200,000 of modified adjusted gross income in USA.
- Book an appointment with Black Ink representative to get all details regarding whether you are eligible for Child tax credit in USA or not, or how much credit you can get on behalf of Child tax credit.
2. Credit for Other Dependents:
- The taxpayers in the United States who have specific type of dependents (other than the qualifying child for child tax credit) can avail credit for other dependents.
- The taxpayers in USA with dependents for whom they cannot claim the Child Tax Credit are eligible to avail credit for other dependents.
- Credit for other dependents qualify those dependent children who are age 17 or older at the end of the year 2019 or parents or other qualifying individuals supported by the taxpayer.
- Contact us to get all details regarding credit for other dependents in USA to lower your tax filing amount within legal limits to avoid IRS representation.
3. Earned Income Tax Credit (EITC):
- Those taxpayers in USA who are low to moderate incomes’ employed can avail the Earned Income Tax Credit (EITC) which is a type of refundable federal income tax credit.
- The taxpayers are required to meet certain eligibility criteria to get the Earned Income Tax Credit in USA. To get Earned Income Tax Credit, the taxpayer must have earned income in USA and file a federal tax return too, even if any tax is not owed by the taxpayer or they aren’t otherwise required to file the taxes.
- Those taxpayers who are eligible to qualify and claim Earned Income Tax Credit in the United States either pay no tax, less federal tax or they may even get a tax refund too as EITC is a refundable credit.
- A taxpayer can avail a refund with the Earned Income Tax Credit even they do not owe any taxes, same as that of Child Tax Credit.
- For working families with three or more qualifying children, up to $6,557 amount can be credited as Earned Income Tax Credit.
- Those taxpayers who are employees and workers without a qualifying child may also get Earned Income Tax Credit but the credit can be up to $529.
- You can request callback to find if you are eligible for Earned Income Tax Credit in USA or not. We can further guide you that whether your child/children meet the EITC qualifying criteria or not. Furthermore, Black Ink can also tell you an estimation of the amount of your Earned Income Tax Credit in USA, if found eligible.
4. Education Credits:
- There are two types of education credits in USA that can be availed by the taxpayers to pay the higher education costs for themselves, a spouse or dependent for better future.
- The education credits in the United States include American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
- Both of the education credits i.e. American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) can be claimed on Form 8863, Education Credits.
- Must note that American Opportunity Tax Credit (AOTC) is partly refundable here.
- Form 1098-T, Tuition Statement, is required by the taxpayer or student to get any of the two education tax credits in USA that can be availed from the school attended. Hire our services to get your education credits done accurately.
Black Ink Helps To Get Tax Credits:
Black Ink is a reputable name in the tax filing and preparation services throughout the United States. We have a dedicated team of accountants, tax professionals and experts who devotedly plan, prepare and file your taxes in USA. Tax credits can help you to lower down the tax amount and you can get a relief from the big tax bill by availing eligible tax credits within the legal limits of the Internal Revenue Service (IRS). Get complete knowledge and information regarding all types of tax credits in USA to lower your tax bill as well as to get tax refunds from the taxation authorities. We help our clients to determine if they can claim any of these tax credits along with their general queries regarding filing status, claiming dependents, filing requirements as well as other critical issues on tax credits in the United States. Also get to know regarding the IRS exclusive tax credits for women-owned business in USA. That was all regarding Important Things to Know About Tax Credits.