A popular tax credit people once had the last couple of tax seasons was the Making Work Pay Credit. Many taxpayers are asking if it has been extended or whether it’ll return, but to date it is no longer available as it expired December 31, 2010. The Making Work Pay Tax Credit was replaced by the Payroll Tax Holiday and will not impact your tax return.
The Retirement Savers Credit is a tax incentive to save for retirement. In exchange for you putting money in a qualified retirement account such as a 401(k), IRA, Roth IRA, or 403(b), the government reduces your taxes. Find out more.
Under 2008 legislation designed to stimulate the housing market, first-time homebuyers could claim a tax credit of up to $7,500, however beginning in 2010 taxpayers were required to pay the credit back. Find out more here.
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.