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7 Ways You Can Get More Money Back on Your Taxes



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These tax credits could give you a larger tax refund this year.

Sarah Tew / CNET

If you still have to file your taxes this year, you’re in luck. The IRS is extension of the tax period until 17 May instead of the usual April 15 (and you can file for an extension if you need more time). More good news: This year there are a ton of tax breaks you could potentially claim, some old and some new.

Tax credits can decrease the amount you owe and potentially increase your refund (you can estimate your tax refund with our calculatorThe last coronavirus incentive package Which President Joe Biden signed the law on March 11 contains some significant changes to existing tax credits. And if you still miss a first or second stimulus check, you can claim those funds on your tax return also — even if you don’t usually file taxes

Read more: Best Tax Software for 2021

Here are some of the tax credits you can claim on your taxes this year that you may not be aware of that could make your family more money.

Recovery discount credit: file if you have not received all of your incentive money

While most people got their first and second stimulus controls automatically, some didn’t because of IRS errors or their status as load non-filers (often including those who are retired or part of the SSI / SSDI programsIf you have not received the full amount you owed from the first check (up to $ 1,200) or the second check to $ 600), or missed money for one of your family members, you can claim that money on your 2020 tax return. Recovery discount credit – here’s how to submit itYou must submit a declaration to receive this credit, even if you don’t usually file taxes


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Earned Income Tax Credit: File if you earn below a certain amount

Designed to benefit lower-income people, the Earned Income Tax Credit can lower your taxable income and wages. Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, part of the Coronavirus relief package for Decemberyou can use your earned income for 2019 or 2020 to calculate your 2020 tax credit – a potentially important provision for people who lost their jobs during the pandemic.

Keep in mind that if you claim this credit, the IRS may ask for additional information, which could delay your refund.

Child tax credit: file if you have children (and get more money this year)

The Child tax credit aims to benefit working families by enabling them to claim a repayable credit per eligible child. Below the new incentive account, the amount you can claim has increased: Instead of the previous $ 2,000 per child, you can now claim $ 3,600 per child under 6 years old and $ 3,000 for children over 6 years old. The money of the credit is split and half is paid through your tax refund, and the other half is paid monthly from July to December.Read more about tax credits for parents here

You can use this IRS tool to determine if your child or dependent is eligible for the credit. As with the earned income tax credit, claiming this credit may prompt a request for additional information, which may delay your repayment.

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Child discount increases can mean a lot more money for your family.

Sarah Tew / CNET

Tax credit for childcare: File if you need childcare

To make childcare more affordable, the new incentive law provides for a childcare tax credit for children under age 13 – up to a maximum of $ 4,000 for one child, or $ 8,000 for two or more children. The credit is refundable and is available to families making less than $ 125,000 per year. Those making between $ 125,000 and $ 400,000 would receive partial credit. Read more from the IRS here.

Saver’s Credit: File if you contributed to our IRA or retirement plan

If you’ve made eligible contributions to an IRA or employer-sponsored retirement plan, you may be able to claim a savings credit. To do this, you must be 18 or older, not be claimed as dependent on someone else’s return, and not be a student. The amount you can claim depends on your adjusted gross income, and will be part of the contributions you have made. The maximum credit you can claim is $ 1,000 (or $ 2,000 if you are married together). The IRS has a chart that you can use to calculate your credit.


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Credit for the elderly or disabled: File if you are older than 65 or have a disability

Those aged 65 and older or who are retired for permanent and total disability who received taxable disability income during the year and are below a certain income threshold may qualify for this tax credit ranging from $ 3,750 to $ 7,500. Use this IRS tool to find out if you qualify for the elderly or disabled credit.

Foreign Tax Credit: File if you paid tax in another country

This one can get complicated, but in general, if you’ve paid income tax in another country or in a US territory, you may be able to deduct it from your US tax return. The IRS breaks down all the rules for the foreign tax credit here.

If you’re wondering about the various tax deductions you might qualify for, check out our story at the 12 best tax deductions for 2021, and why you may not be able to claim the home office deduction even if you now work remotely. Plus, find out when you might get your third stimulus check, and how much incentive money you qualify for

The editorial content on this page is based solely on objective, independent reviews by our writers and is not influenced by advertising or partnerships. It is not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.


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