You’d be surprised by how many folks miss out on things that could save them money when filing their taxes. According to the IRS, one of the main benefits that folks miss out on are tax credits.
A tax credit is a dollar-for-dollar amount that an individual can directly subtract from their tax return to reduce the tax they owe. This can lower the total tax payment or increase the refund amount. Tax credits can be nonrefundable, refundable or partially refundable.
They can also be more valuable than tax deductions because they directly reduce your tax bill, dollar-for-dollar. Some of the things that tax credits can be used for are purchasing health insurance through the marketplace, paying for higher education, covering child care costs and more.
Click here for more details on how you can benefit from tax credits that are available to you and start saving.
