Your taxes are an obligatory payment you have to make as part of a working citizen. If you’re a high paying earner, this may be almost 30% of your earnable income. However, if you meet the requirements, you may be eligible for a tax return. We show you what tax credits can help you earn some extra dollar.
Proactive tax payments
Why would anyone want to pay their due taxes early? Well, you could be missing a nifty trick here. You could be missing out on a decent paying tax return! If you plan well and pay before the end of December.
File your W2 early, go online and complete the details and send it off. Then you’ll receive your tax refunds earlier.
Customise your tax deductions
The IRS will set a standard deduction for you when in employment. However, if you’ve been partaking extra curricular activities like charity work, job searches and other professional related work that had expenses, add them to your file. You might find out you’re being owed more of a refund than you had thought previously.Click here for more
A friend in need is a friend indeed
If you’ve been helping a friend or family who’s on a low income, you can get a reimbursement for your kindness. You need to apply with the IRS and pass their qualifying test, ensuring you are not related to your dependent (i.e. not a parent-child) and that the dependent is earning less than $3950 per annum, and that you are providing for them for an entire year or more. If you pass the test, you may be eligible for a tax return.
Earned Income Tax Credit
This tax return is refundable and is geared towards low to medium income families, as they can claim nearly $6044 annually, based on a family of more than three children. Many people fail to claim it due to change of circumstances in their income. From 2013, the qualifying income is between $31,870 to $51,567.
Save Tax Credit
This tax refund is non-refundable and is designed for the low-income earner who is contributing to their retirement funds i.e 401k. Full-time students studying for more than five months of the academic year and dependents are not eligible for this tax return. The maximum that can be returned is $2,000 per annum, depending on your taxable income.
American Opportunity Tax Credit
This tax return is for qualified college expenses and fees paid for an enrolled student for the first four years of college education. As a student, you can claim up to $2,500 per year.
If you’re a tax payer, you may be owed some tax refund, depending on your circumstances. Many of these tax returns are means tested and depend on whether you have a family, have a dependent for a year or more, contributing to a savings account or retirement pension or are a full-time student for the whole academic year. Do your homework, and the tax returns might be coming to you sooner than you think. See more this site: http://www.colorado-loans.net/tax-return-online-brings-convenience-to-your-doorstep/