Both deductions and credits reduce how much tax you pay, but how both impact your taxes is quite different. Find out how they are different and find out about the different tax credits available at tax time.
The Child Tax Credit was extended until 2012 and you may be able to reduce your federal income tax by up to $1,000 for each qualifying child. Check out our Child Tax Benefit Infographic to see if you qualify for this and other tax deductions and credits.
You can deduct your medical expenses, your spouse’s expenses (provided you’re filing jointly), or your dependent. You have to itemize your deductions and the expenses must be more the 7.5% of your AGI. Find out what expenses qualify.
Every year you’re faced with one important tax question: should you itemize or just use the standard tax deduction? For some people this is an easy question, but for others who may be thinking about the difference for the first time, it can be a little confusing and intimidating.
The holidays are an unmistakable reminder to maximize end-of-year tax deductions. And if you can help brighten a child’s holiday at the same time, well, what’s better than that? By donating toys to charities this holiday season, you have the opportunity to do just that. Provided you itemize your deductions, toy donations to the following organizations (and many more) can be written off on your 2010 tax return.