Maximize Your Refund-Individual Tax Credits

A tax credit reduces the amount of taxes owed, dollar-for-dollar. Some tax credits are also refundable which means you are eligible to claim one and you can get the rest of it in the form of a tax refund even when your tax liability has been reduced to zero.

The following are some tax of the tax credits that could help you to increase your refund:

Earned Income Tax Credit -This is a refundable income tax credit for low to moderate income working individuals and families. There are several rules and qualifications

The Child and Dependent Care Credit-This is a credit for expenditures paid for the care of your qualifying children under the age of 13, or for disabled spouse or dependent, while you work or look for work.

The Child Tax Credit-This credit is in addition to the Child and Dependent Care Credit and it is for taxpayers that have a qualifying child. For each qualifying child the maximum amount you can claim is $1,000.00.

The Retirement Savings Contributions Credit (Saver's Credit)-This credit is for people who have an income below a certain amount and also contributes to an IRA or a retirement plan like a 401(k) plan. This credit was intended to help low-to moderate income workers save for retirement. The maximum saver's credit is $1,000 and $2,000 for married couples.

Education Tax Credits-There are different types of educational tax credits as well as deductions. The American Opportunity Credit is available to a larger range of taxpayers, including some those who do not owe tax and those who have a higher income. Many taxpayers will receive the maximum annual credit of $2,500 per student. The Lifetime Learning Credit aids parents and students pay for post-secondary education. This credit may give you up to $2000.00 for educational expenses that meet the requirements. A taxpayer can only claim one of the tax credits.