Tax season is here, and as you prepare to file your federal return, tax credits deserve a close look. Unlike deductions, credits reduce the amount taxpayers owe in income taxes dollar-for-dollar. Some tax credits are even fully or partially refundable, meaning if your tax bill is less than the amount of a refundable credit, you can get the difference back in your refund. Some taxpayers don’t claim credits because they assume their income is too high to qualify when in fact it isn’t. Common credits for individuals include the Child Tax Credit, Child and Dependent Care Credit, and the Credit for Other Dependents. If you have questions about whether you qualify for any tax credits, contact us.
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