It’s something that most people dread: tax season. Filing taxes can be a bit of a drain, both mentally and, at times, fiscally. There are so many confusing things to take into consideration when you’re filing your taxes. Even if you’ve been wise to look for Robert Hall & Associates professional tax advice, it can be hard. If you haven’t, it can be worse. Thankfully, the answers to a few quick questions, can get you up and going when it comes to filing your taxes.
1. Who Counts as a Dependant?
This can be quite confusing in large households, households that file separately, or divorced parents filing. Dependants are typically children that are either yours or in your care for the majority of time. They can, however, be a qualifying relative that isn’t a child but that you care for most of the time. If you’re filing jointly, claiming your child shouldn’t be a problem. Separately, it becomes tricky. And, divorced parents should remember that only one of them, not both, can claim the child as a dependant.
2. What Is the Earned Income Tax Credit? Can I Claim It?
This is a question that is normally not asked by those who could use it the most. It is also a question that is more often asked when the economy is down and people are facing difficult financial times. People with middle and lower-income are oftentimes simply unaware this exists. Simply put, if you are able to file your taxes, meaning you meet the bare minimum required for that, it can provide a payout for those with three dependants or more. This can save them up to $5,891.
3. What Are Qualified Educational Expenses?
Are you in college or university and wondering if the expenses you’ve racked up there might be deductible when it comes time to file taxes? Perhaps you’ve heard of qualified educational expenses. This is a useful write-off for those who are in college, whether they’re going full-time or part-time. If you meet the correct income requirements, this can help you save up to $2,500, making it perfect for those who are working their way through school.
4. Who Is Eligible for Child and Dependant Care Deductions?
Are you a working parent who has to send your child to daycare or a babysitter while you work? Or, perhaps you’re a parent who, when school is out for summer, is forced to find childcare so that you can continue to do your job? If so, you are likely eligible for child and dependant care deductions. This is a deduction for child care that you have to have in order to do your job. Fun fact: this can also include summer camp!
5. Are There Any Other Educational Credits Available?
Yes, there certainly are. If you’re someone who already has a secondary education degree and you’re going back for post-secondary education, you can take advantage of the lifetime learning credit. This is geared towards helping and encouraging people to continue their education throughout their entire life instead of simply stopping at secondary education. If you qualify for this, you can receive a credit that is worth as much as $2,000. Those who returned to school should definitely look into whether they qualify for this.
Getting Your Refund
While they can be confusing, learning about the tax system and what you should mention when you file is a vital part of ensuring you have a decent refund. By reading these questions, hopefully you are now aware of new write-offs you can claim, who your dependents are, and how much your education could save you.
Like Us? Sign Up!
Subscribe to get the latest budget buzz via email.