No children to claim?

Greetings,

Many of my clients ask me what credits are available to help boost their refund If they do not have any children to claim?

My short response... A LOT! Seriously there are many credits out there for individuals with out any children. I get excited when I hear this question because I get a chance to show off what I know. Below I've summarized a few credits that popped up in my mind. Hope this helps. Of course, you're welcome to contact me for a free consultation.

To start out let me define TAX CREDIT. Basically a TAX CREDIT  IS A DOLLAR FOR DOLLAR REDUCTION OF YOUR TAX LIABILITY. This is what DIRECTLY increase your refund.

SHORT LIST OF CREDITS:

• Earned Income Credit
• Education Credit
• Tuition and Fees
• Student Loan Interest
• Tax credit for the elderly or the disabled
• Foreign tax credit
• Tax credit for IRA and retirement plan contributions (the retirement savings contribution, or “savers” credit)
• Health insurance premium assistance credit (not available prior to 2014)
• Tax credits for certain qualified fuel cell and plug-in electric drive motor vehicles
• Tax credit for purchasing qualified energy-efficient property (e.g., solar water heater)
• Adoption Credit

DESCRIPTIVE LIST: (Shout to www.IRS.GOV for free information)

 

Earned Income Tax Credit

The amount of the credit depends on your income and the number of qualifying children you have. For people with wages, salaries, tips, self-employment income and other earnings, the EITC gives up to:

·        $6,143 to households with three or more children

·        $5,460 to households with two or more children

·        $3,305 to households with one child

·        $496 to households with no children (only if you were between ages 25 and 64 in 2014)

 

Tuition and fees TAX deductions:

·        This deduction can reduce the amount of your income subject to tax by $4,000 or less.

·        You may be able to deduct qualified education expenses for yourself, your spouse or a dependent.

·        The education expenses must be for higher education (after high school). They include tuition and other required fees and expenses (activity fees, books, supplies, equipment). You can’t include personal expenses such as room and board.

Education Credits:

1. American Opportunity Credit

·        You can receive a credit of up to $2,500 per student.

·        It can only be used for the first four years of post-secondary education (after high school) for an undergraduate degree or other recognized education credential.

·        Up to $1,000 of the credit is refundable, so you can receive it even if you don’t owe taxes.

2. Lifetime Learning Credit

·        You can receive a credit of up to $2,000 per student.

·        It can be used for all years of post-secondary education (after high school) and for classes to improve job skills (non-degree programs are included).

·        The maximum credit is limited to the amount of tax you owe on your return.

 

Student  Loan interest deduction

If you paid interest on a student loan and your income qualifies, you may be able to reduce the amount of your income subject to tax by up to $2,500.

Savers Tax Credit

The SAVERS CREDIT formerly the Retirement Savings Contributions Credit, is for eligible contributions to retirement plans such as qualified investment retirement accounts, 401(k)s and certain other retirement plans. Taxpayers with the least income qualify for the greatest credit -- up to $1,000 for those filing as single, or $2,000 if filing jointly.