Earned income is subject to federal taxes. To legally reduce the tax liability owed on earned income, taxpayers can claim deductions and tax credits when filing their annual tax return. There are several tax deductions which lower the amount of income subject to tax, with taxpayers having a choice between claiming the standard ... Read More
Tax Credits & Deductions
Federal Energy Tax Credits: IRS Tax Credits for Energy Efficiency
Did you make energy efficient home improvements in your home during 2010 or purchase an energy efficient vehicle? If you did, do you know that you may qualify for a credit on your 2010 income tax return. If you purchased and installed certain energy efficient items in your home last year or bought a hybrid vehicle you will want ... Read More
Child Care Tax Credit 2010: Qualifications for Dependent Care Credit
Did you pay someone to watch your child, spouse or other dependent during the 2010 tax year? If you did, you may be eligible for the Child and Dependent Care Tax Credit. Paying for child care or dependent care is costly so this is definitely one credit you won’t want to miss. Of course, in order to claim the credit you must meet ... Read More
Tax Credits, Benefits and Deductions for Disabled Taxpayers
If you are a taxpayer and have a disability or have a child or other dependent with a disability you may qualify for numerous tax deductions and credits when you file your income tax return. Here is a look at the different benefits and what you need to know. Increased Standard Deduction: If you are blind or partially blind ... Read More
Education Tax Credits: Credits to Offset the Cost of Higher Education
The costs of higher education can be staggering. Thankfully, there are two tax credits available to help families offset the cost of higher education for either your own educational needs or that of your dependents. Tax credits reduce the amount of income tax you are required to pay, which is typically better than a tax ... Read More
Making Work Pay Tax Credit for 2010
President Obama introduced the Making Work Pay Tax Credit in an attempt to reduce the tax burden on middle class Americans, but this tax credit is scheduled to expire at the end of 2010, attempts were made to extend but it only applies to 2010 income now. Although this tax credit essentially means that average tax payers are ... Read More
Tax Credits to Keep in Mind for 2010 Taxes
While it may be too late to take advantage of tax credits for 2009, now is the best time to look forward to next year. If you know which tax credits are available for 2010, there is a much better chance that you will find a way to benefit from them. Here is a list of tax credits to keep in mind for 2010: Child Care Credit. ... Read More
Making Work Pay Credit Will Most Likely Cause IRS Back Taxes
At the beginning of this month, the Treasury Inspector General released a report describing the negative effect that reduced withholding associated with the Making Work Pay Credit (MWPC) could cause. What the report mentioned is that 15+ million taxpayers could owe taxes when filing in 2009 and 2010 due to the fact that the ... Read More
