Tax Credit - What is It?

What is a Tax Credit?

Tax credits are valuable incentives offered by the government that directly reduce the amount of tax you owe. They can significantly lower your tax bill and sometimes result in a refund!

Types of Tax Credits

Types of Tax Credits Content: There are two main types of tax credits: non-refundable and refundable. Non-refundable credits can reduce your tax liability to zero, while refundable credits can lead to a refund even if you owe no tax.

Common Tax Credits

Some popular tax credits include the Earned Income Tax Credit (EITC), Child Tax Credit, and education credits. These can provide substantial savings for eligible taxpayers.3

How to Claim Tax Credits

To claim a tax credit, you must complete the appropriate forms when filing your tax return. Keeping accurate records and consulting a tax professional can help ensure you don’t miss out on any credits.

Get Help with Your Tax Credits

At Jarrar CPA, we specialize in maximizing your tax benefits, including tax credits. Let us help you navigate the complexities of your tax return and ensure you get the credits you deserve!