What Tax Credits Can A Family Get?

Family tax credits are offered by the Internal Revenue Service or IRS and should be taken advantage by tax payers. These tax breaks will minimize your tax payments and is financially beneficial to you and your family.

Types of Family Tax Credits

The IRS offers not only one but a number of tax credits for American families. Some of the tax rewards that you may be qualified for are the:

earned income tax credit - This tax break is basically purposed for working families who do not have a high income. Eligible tax payers may get a refund after the application is calculated and evaluated. A person's eligibility is determined by supplying all information required using the "EITC Assistant" online tool available on the IRS website. Some important requirements of this tax incentive are your filing status, amount of income, and qualifying child test.

child tax credit - Is a tax incentive for working individuals who have a qualifying child or children. The taxpayer can claim up to a maximum amount of $1,000 for each eligible child. Only Forms 1040, 1040A, and 1040NR can be used to apply the credit.

first-time homebuyer tax credit - Families who bought their first house are given 10 percent tax credit of the property's purchase price. Tax payers who filed as married couples filing jointly can get a maximum credit of $8,000. This tax deduction is available for homes amounting from $80,000 or higher.

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