Filing an Extension? Check for Tax Credits First.

Pay Stub
See If These 3 Tax Errors Are Hiding in Your Paycheck
October 5, 2017
Show all

Filing an Extension? Check for Tax Credits First.

If you requested an extension of time to file your federal tax return, you have until Oct.16 to double-check your return for tax benefits many people often overlook. You still have time to see if you can benefit from these four credits.

Earned Income Tax Credit

The Earned Income Tax Credit – also known as EITC and EIC – benefits people who work and who have low-to-moderate incomes. This credit reduces the amount of tax owed and may result in a refund. To qualify for this credit, a person must meet certain requirements. They must also file a tax return.

Child Tax Credit

This is a credit of up to $1,000 per qualifying child. Taxpayers who claim this credit – but who do not qualify for the full amount – may also be able to take the additional child tax credit.

Saver’s Credit

This credit helps low-to-moderate-income workers save for retirement. It is also known as the Retirement Savings Contributions Credit.

American Opportunity Credit

A credit for tuition, enrollment fees, and class material for the first four years of higher education. The amount of this credit is up to $2,500 per eligible student per year.

Taxpayers should check IRS.gov/credits-deductions to learn more about other credits they may be qualified to claim when they file. Taxpayers who must file their 2016 taxes by October 16 should consider filing electronically using IRS e-file or the Free File system.

Additional filing information for taxpayers in disaster areas and combat zones:

Although Oct. 16 is the last day for most people to file, some still have more time. This includes taxpayers in places recently hit by hurricanes that are federally-declared disaster areas. It also includes members of the military and others serving in a combat zone who have at least 180 days after they leave the combat zone to file returns and pay their taxes due.

Find More Posts Like This One:

Comments are closed.