Wednesday, November 6, 2019

Key Ways to Save Money Come Tax Time

Tax season isn’t here yet, but it is quickly approaching bringing groans to many. However, with a few effective strategies, you can make the most of your tax deductions and save money come tax time for those meeting the eligibility requirements. What you choose to do with all of that extra money is up to you.

Lifetime Learning

College students rejoice! The Lifetime Learning Credit can help those allows college students at any level to receive up to $2,000. Even some of those not pursuing post-secondary education may qualify for the credit. Those above the income thresholds of $116,000 for married couples and $58,000 for individuals, the credit may still be available in fading amounts. Tax minimization strategies can save you money on things you are already doing.

Savers Tax

Once called the Retirement Savings Contributions Credit, the Savers Tax Credit focuses on those saving for retirement by contributing to their eligible retirement plan. This allows you to deduct the eligible amount placed in the account and give you an extra $1,000 for individuals and $2,000 for joint filers.

Child Care

Working parents and those taking care of dependent persons can benefit from the Child and Dependent Care Credit. Children under 13 can help you qualify for the credit to help cover the costs of childcare. If you are caring for a mentally or physically disabled person of any age, you may also qualify for the credit.

American Opportunity

The American Opportunity Tax Credit expanded the Hope Credit. The new credit covers four years of post-secondary education of undergraduate tuition. For those making up to $160,000 for married couples and $80,000 for individuals, you may qualify for up to $2,500.

Earned Income

Established in 1975, the Earned Income Tax Credit gives taxpayers an incentive to work by helping offset the burden of social security taxes. Even self-employed members may qualify for the tax credit. This is can be a crucial credit for those in lower-income jobs.