Tax Credits

There are several tax credits available to individuals and small businesses. Tax credits reduce your actual tax dollar for dollar, unlike tax deductions which reduce your taxable income. The terms and conditions for tax credits change every tax year, but we’ve listed a few of the more common credits below.

AMT Credit

The Alternative Minimum Tax Credit is the result of incurring an AMT in a prior year, generating a credit that can be used to offset the excess of the taxpayer’s regular tax over the AMT Tax in a subsequent year.

Adoption Credit

Adoptive parents may claim a tax credit for the qualified expenses of adopting a child.

Child and Dependent Care Credit

This credit may be used by those caring for a child, disabled child, spouse, or other dependent while seeking work or working.

Child Tax Credit

Taxpayers who have a qualified child may use this credit.

Earned Income Credit

A credit for taxpayers who work but fall into a low-income category.

Home Energy Credit

A variety of credits are available to homeowners who make improvements to their residence which make it more energy-efficient.

Making Word Pay Credit

This is a refundable credit on earned income.

Saver’s Credit

This credit is available for retirement plan contributions made by eligible, low income taxpayers to IRAs and qualified elective income deferral arrangements.

Work Opportunity Credit

This credit is available on an elective basis for employers hiring individuals from one or more specified targeted groups.

 

Please contact us to find out how these and other credits may reduce your tax liability.

Taxation Solutions, Inc.

12250 Queenston Blvd Suite H, Houston, TX 77095