Sherry S. Borshoff, EA

Tax credits are tax breaks offered by the IRS that allow you to reduce your tax liability by the amount of the tax credit. Tax deductions reduce your taxable income, but they do not allow you to have more of a tax refund or anything like that. Basically, deductions just reduce the income you are

If you are looking to reduce your tax bill, you may want to see if you qualify for a refundable or partially refundable tax credit. Refundable tax credits can be worth more than what you owe in taxes, meaning you may be able to have a tax refund or an increase in the amount of

The Child Tax Credit (CTC) was created to help families with the cost of having children by offering a partially refundable tax credit. For the 2020 tax year, you can claim a tax credit up to $2,000 per qualifying child. This credit has a refundable portion worth up to $1,400. In this article, we will

The Child and Dependent Care Tax Credit is another great tax credit you should try to take advantage of (if you qualify). It was created to help working parents with expenses incurred for the care of a child or adult, as necessary for the dependent’s well being and safety. There are some pretty extensive requirements

The Health Coverage Tax Credit allows you to have 72.5% of your qualified health insurance coverage premiums to be paid directly to your health plan administrator on a monthly basis on your behalf. This tax credit was created to lower your out-of-pocket payments for monthly insurance premiums. As far as tax credits go, this is

The Additional Child Tax Credit (ACTC) is a tax credit for taxpayers who get less than the full amount of the Child Tax Credit. This credit may give you a tax refund even if you don’t owe any tax when you file your annual tax return. That’s why some tax credits, as opposed to tax

Have you made energy-saving upgrades in the past year? If you have, you may be eligible for a tax credit that can save you big time during tax season. Unlike tax deductions, tax credits reduce your tax liability directly, dollar for dollar. Tax deductions reduce your taxable income – what you pay taxes off of.

The Earned Income Tax Credit (EITC) was created for low to moderate-income families. The more children you have, the greater the amount of the EITC is for you. You can claim this tax credit if you are childless, but you will not receive the same tax breaks, and the requirements for eligibility are stricter. You