Tax Credits That Can Boost Your Tax Return

October 13, 2017

Filing your taxes can take time and be very stressful. Tax laws change every year, and much of the tax preparation is spent trying to understand the deductions and credits for which you qualify. Instead of spending the average 30 hours it takes to prepare and file your taxes, turn to an Encino tax advisor for individualized service to boost your tax returns. Here are two credits that many Americans are entitled to take, but are often overlooked.

Earned Income Credit

Working families and people who have a moderate to low income often qualify for the earned income tax credit (EITC). The EITC decreases your taxes owed and may even give you a refund. The qualifications include:

• Have a valid Social Security number

• Be a U.S. citizen, resident alien for at least a year or a non-resident alien married to an American

• Have income from an employer or self-employment

• Not be a claimed dependent of another person

• Be between the ages of 25 and 65 or have a qualifying child

• File a tax return

Dependent Care Credit

You may also boost your taxes when you claim the expenses you paid for child or dependent care. The maximum you can claim under this credit is $3,000 for one child or $6,000 for two or more. The person qualifying has to be a child who is under 13 years of age, a spouse who is incapable of self-care or a dependent who is incapable of self-care who lives with you for more than half the year. The taxpayer has to meet other criteria, too. Work with your tax expert agency to make sure you qualify.

Hire a Tax Professional

The tax laws are complex. Every family’s situation varies based on many different factors. Working with a Los Angeles tax specialist now helps you to maximize your return. Contact us for help with your taxes to avoid paying any more than necessary.