The Top Tax Credits You Need to Know About

If you want to get as much money back as possible when you file your tax return, you need to take advantage of all the tax credits that are available to you. Since there are plenty of tax credits that many people don’t know about, we want to use this post to highlight some of the most significant ones:

  1. Earned Income Tax Credit

Although the Earned Income Tax Credit has been around since 1975, there are still plenty of people who haven’t heard of it or don’t know exactly how it works. This credit is for individuals and married couples between the ages of 25 and 65. This credit is designed to provide an incentive to work and offset the burden created by Social Security taxes. Speaking to a tax professional is the best way to get all the details on thresholds, other eligibility requirements and how much is available from this credit.

  1. Lifetime Learning Credit

Not only is this credit available for any years of post-secondary education, but it’s also available for people who aren’t pursuing a degree. This credit is available to both individuals and married couples. The credit can be as high as $2,000. When you look into this credit, it’s also a good idea to see if you’re eligible for the American Opportunity Tax Credit.

  1. Savers Tax Credit

If the name of this credit isn’t familiar to you, it’s worth noting that it was previously called the Retirement Savings Contributions Credit. This credit is intended to help lower income taxpayers make eligible contributions to accounts like 401(k)s or other retirement plans.

  1. Child and Dependent Care Credit

This tax credit is designed for parents. Its purpose is to help with the often significant costs associated with paying for daycare or other forms of childcare. It’s available to tax filers with a child under the age of thirteen. Depending on someone’s adjusted gross income, this credit can cover up to 35% of qualifying childcare expenses.

Don’t Miss Out On Any Tax Credits

While all of the tax credits covered above can be quite significant, they’re definitely not all that’s available. Given the immense size of the US tax code, the number of credits that may be available to you is quite large. If you want to ensure that you don’t miss out on any of those credits, you need to work with a Cincinnati tax professional. By letting an experienced professional handle your taxes, you can be confident that every applicable credit will be used for your return.

To get your tax return prepared and filed by a knowledgeable professional for a great price, call Donohoo Accounting Services today at 513-528-3982.

How to Get Your Maximum Refund When You File

No one wants to pay more taxes than they’re required to pay. And if you qualify for a tax refund, you want to get the maximum refund that’s available to you. Thinking about the best way to accomplish both of those goals should be the main influence on how you decide to go about preparing and filing your taxes.

Two Potential Options for Preparing and Filing Taxes

There are two main ways that people in Cincinnati can take care of their taxes. The two available options are using online tax software or working with a tax professional. When online tax software companies market themselves, they focus on how easy and affordable their products are. However, if you’ve ever tried that type of software before or spend time reading reviews from other people, you have likely discovered that it doesn’t always work as well as promised.

Additionally, if software causes you to miss any tax credits, it means you’re not going to get as large of a refund. So while it’s true that you might pay a little less for the option, it could actually end up costing you a significant amount in the long run.

5 Reasons to Go with a Cincinnati Tax Professional

If you want a fast refund and to ensure that you get back as much as possible, there’s simply no substitute for what a Cincinnati tax professional can offer. By working with a knowledgeable tax professional, you’ll actually save money by ensuring that you don’t miss out on opportunities like the earned income credit.

Working with a professional also means you’ll save time. While tax software makes it sound like this process is easy, everyone knows that taxes are complicated. Instead of spending countless hours on your tax return, an experienced professional who actually does deal with these issues all the time can take that task off your plate.

The third benefit of having a professional handle your taxes is they will reduce the risk of any errors being made. Filing a return that’s free of any errors will help you get your refund back as soon as possible. And in the event that you are ever audited for any reason, the fourth benefit of a tax professional is they will help you comply with any requests made by the IRS.

All the benefits of working with a tax professional in Cincinnati come together to provide peace of mind. So instead of feeling a sense of dread when tax season arrives, you’ll be able to get through this process with minimal stress and come out of it with the best possible refund.

To ensure you get your maximum refund when you file your taxes, call Donohoo Accounting Services today at 513-528-3982.