Many Families And Indivduals Are Eligible For Tax Credits

WASHINGTON – OCTOBER 13: U.S. President Barack Obama speaks during a Rose Garden event about the American Opportunity Tax Credit (AOTC) October 13, 2010 at the White House in Washington, DC. Obama had a meeting with college students and their families on American Opportunity Tax Credit (AOTC) and he urged the Congress to extend college tax credits. (Image credit: Getty Images via @daylife)

The 2010 tax year offered many deductions and credits for those who chose to itemize their deductions. That is good news for many taxpayer’s but the better news is that there are some new 2011 tax credits that many people may not be aware of, and better still some of these credits can be used even if you do not itemize on your tax return. One credit that some of us might overlook is an energy tax deduction.

The energy credit can be taken up ten percent on a project with a five-hundred dollar cap. It can be used on anything from gas, electric or oil water heaters to energy star windows. check with your tax professional or the IRS for information on energy related deductions and credits.

Other credit that might be overlooked are Education Incentives. One such deduction under this heading would be the American Opportunity Tax Credit. This is a credit of up to $2500.00 of the cost of tuition and related expenses. This also includes the cost of materials. There is also a deduction or credit for the interest paid on a student loan.

There are many credits for families that are worth looking into. Child tax credit as well as Dependant Care Tax credit. Dependant Care Credit allows a taxpayer credit for a percentage of childcare expenses for children under the age of 13 or disabled dependants.

Tax Benefits For Parents

When doing your taxes there are so many things to remember that mostly everyone forgets about tax benefits for parents. You could receive benefits for your kids. Here are some ways to see if you apply.

  • As of March 29, 2010 you can reduce premiums you paid for health insurance, but that’s only if you were self employed. If your child is under 27 even if they have never been your dependent you can claim them. Meaning if you have a child you have never claimed and he or she is under the age of 27 by December 31, 2010, then you can make them one of your dependents that’s only if you paid premiums on any health insurance, and you were self employed then you can minus the premiums you paid for it.
  • If you have ever been laid off work and had to hire someone like a baby sitter or a nursery and daycare center. If your kid is under 13 years of age you might be able to claim them as one of your dependents. Meaning if you got fired and you have a kid under the age of 13 and you had to hire someone to watch them as you look for work, you could claim them as a dependent.

-The EITC is a program where you could benefit from incomes you have earned from farming, wages, and self-employment. Actually it takes down the wage of tax you owe and can possibly give you a refund. Therefor certain people can get rewards for incomes they have earned.

  • When you have children and they have income that comes to them by working they possibly can have to file a tax return.

-Interest from student loans. If you have a kid that is in college and you pay qualified student loans you can reduce the interest you paid.

Before doing your taxes remember to check up on things and make sure if you have kids to research all the benefits available to you. Your tax return will benefit greatly from your knowledge of child tax credits.