News

Actions

Tax Tips: Take advantage of all eligible credits

CORP-Digital-Default-Image-1280x720-WMAR.png
Posted at 8:13 PM, Apr 12, 2016
and last updated 2016-04-12 20:13:45-04

Kids can be expensive, but around tax time they can be some of the best assets. 

You can thank the "child tax credit." Each kid you claim as a dependent earns you a credit up to $1000. If you're paying for childcare, you could potentially save even more.

Working parents may qualify for a daycare or babysitting credit for kids under 13. Plus, the credits don't stop when your teenager goes to college.

"The biggest of those is the American Opportunity Credit; good for the first four years of secondary education," said senior tax advisor at H&R Block Richard Gartland. " That can actually put $2,500 into your pocket."

If you're a small business owner, check into "Section 179." It allows businesses to deduct purchases of equipment or software. One of the most popular uses is for new vehicles. If you use that car, truck or SUV for business at least half of the time, it can qualify. It can be new or used as long as it's new to you.

For homeowners, it's a good time to go green. The IRS includes some big tax credits for renewable energy. It can be worth up to 30 percent for solar panels and wind energy, even insulation. 

Download the ABC2 News app for the iPhone, Kindle and Android.