What are the tax credits that exist in addition to the Child Tax Credit

Photo: Karolina Grabowska / Pexels

The issue of the Child Tax Credit has been at the fore in recent weeks, as President Biden seeks to secure one more year of the expanded credit that took effect in July. The bill Build Back Better includes a provision to expand the program up to 2022, but its approval is far from certain.

The Expanded Tax Credit per Child that is distributed until 15 December in the form of payment monthly has managed to reduce food insecurity by 24% in recent months.

However, the child tax credit is by no means the only one offered to taxpayers in the United States so these are some of the the credits and deductions that are offered year after year.

Earned Income Tax Credit

For people with a low or moderate income level, The Earned Income Tax Credit (EITC) allows eligible taxpayers to reduce their tax bill at the end of the year .

You may even be entitled to a tax reduction if you declare little or nothing, although you will have to present your declarations to activate the payment of the credit.

If the EITC reduces your outstanding tax bill to less than zero, you may receive a refund payment.

Tax benefits for education

To help cover the cost For various expenses related to education, there are a number of credits offered to elementary, high school and college students. You can find out which education tax credits you are entitled to by using the IRS Interactive Tax Assistant.

There are education savings plans that you can use to add to a tax-free fund, which can be used for everything from books and educational materials to paying up to $ 10, 000 student debt dollars .

Tax incentives for energy

Anyone who wants to make improvements to their energy system, whether at home or in their business, can benefit from tax conditions.

Tax credits exist for those making energy-saving modifications or purchasing “green” appliances, available at the local, state and federal levels.

Tax relief for catastrophe situations

You can request special tax assistance from the IRS if you, your home or your company has been affected by an emergency or a major disaster.

Federal Tax Deductions for Donations

Charitable donations that go to an organization 501 (c) 3 can be tax deductible, which means that you can use them to reduce the size of your pending tax bill.

To do this, you must submit a form from Annex A as p art of your tax return.

You may be interested :

Why is it necessary to continue with the credit tributary by child

Child Tax Credit: what to do if you did not receive it until now and you missed the registration of 24 November

Child Tax Credit: the last payment of the tax credit arrives