With the end of the year, state stimuli are on the way out and the approval of a federal relief check is more of a dream than a reality. May spirits not fail, because The Internal Revenue Service (IRS) has a number of tax credits, some refundablewhich could give some dollars to taxpayers in 2024. At SoloDinero we will tell you what its characteristics are and how much benefit you could receive.
1. Child Tax Credit (CTC)
Since its creation and establishment in 1997, the Child Tax Credit (CTC) is one of the most significant tax benefits in the history of the United States, as it is one of the most far-reaching. During the pandemic, the benefit was expanded; but after the end of the health crisis, aid amounts returned to previous approved supportgoing from giving between $3,000 and $3,600 dollars to $2,000 per qualifying child for tax year 2023.
Additionally, it should be noted that this total amount is not fully refundable. Current legislation increased this ability to be able to return money to taxpayers from $1,500 to $1,600 dollars.
2. Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) is an excellent complement to the CTC, as it benefits workers with qualifying children. While for the 2023 tax year you can claim up to $7,430 dollars, depending on your income and the number of children you have, the maximum amount for fiscal year 2024 will be $7,830. This credit is refundable.
3. Child and dependent care credit
The 2021 American Rescue Plan made the Child and Dependent Care Credit fully refundable, although the amount of the benefit requires a specific calculation. You can receive up to 35% of $3,000 for one dependent or $6,000 for two or more dependents.
These amounts They must correspond to the verifiable expenses that the taxpayer has made regarding the care of their children or elderly dependents.such as the expense of daycare for a child under 13 years of age or the hiring of a professional to care for a spouse or parent who cannot care for themselves.
Keep in mind that if you spend more than $6,000 for two or more dependents, the surplus will not count towards the calculation of this credit.
4. American Opportunity Tax Credit
Designed for households with a student, the American Opportunity Tax Credit (AOTC) allows taxpayers can receive tax support of up to $2,500 dollars per year for each qualified student. Applies only to qualified higher education expenses within the first four years.
The credit can only reimburse you up to 40% of your total credit or a maximum of $1,000 dollars when you exceed your tax obligation.
5. Retirement Savings Contributions Credit (Savers’ Credit)
The Retirement Savings Contributions Credit, better known as the Saver’s Credit, Rewards you for planning for your retirement by contributing to your IRA or 401(k). The IRS stated that depending on the adjusted gross income reported on your Form 1040, the credit amount will be 50%, 20% or 10% of one of the following types of accounts:
- Contributions made to a traditional or Roth IRA
- Elective salary deferral contributions to a government 401(k), 403(b), 457(b), SARSEP, or SIMPLE plan
- Voluntary employee contributions (after-tax) to a qualified retirement plan (including the Federal Thrift Plan) or 403(b) plan
- Contributions to 501(c)(18)(D) plan
- Contributions to an ABLE account (if you are the designated beneficiary)
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2023-12-06 21:21:13
#advantage #tax #credits #refundable #Solo #Dinero
