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You may be eligible to get tax credits if you earn below a certain income, have children, care for a family member or save your money in an IRA. Ask your tax preparer about these most commonly overlooked tax credits.







  • Credit is based on expenses incurred in the legal adoption of a child under age 18 or for the adoption of an incapacitated or special needs person, regardless of age.
  • Although the credit generally is allowed for the year following the year in which the expenses are paid, a taxpayer who paid qualifying expenses in the current year for an adoption which became final in the current year, may be eligible to claim the credit on the current year return.
  • In addition to the credit, certain amounts reimbursed by your employer for qualifying adoption expenses may be excludable from your gross income.
  • Unused credit may be carryforward up to 5 years.
  • If you paid someone to care for a qualifying individual so you (and your spouse, if you are married) could work or look for work, you may be able to claim the credit for child and dependent care expenses.
  • A qualifying individual need not necessarily be a person who is claimed as a dependent of the taxpayer.
  • If you are married, both you and your spouse must have earned income, unless one spouse was either a full time student or was physically or mentally incapable of self care.
  • A student or disabled spouse earned income is deemed to be a least $250 (for one qualifying individual) or $500 (for two or more qualifying individuals.
  • Expenses might include amounts paid to dependent care centers, household services, household employees, school costs, camp and special school expenses.
  • Taxpayers with one or more qualifying children may be able to claim a non-refundable child tax credit of up to $1000 per qualifying child.
  • A qualifying child must be under age 17 at the end of the tax year, be a US citizen or resident alien, be a child of the taxpayer or a descendant of a child of a taxpayer, live in the same house for more than half the tax year and not have provided over half of his or her own support.
  • Certain taxpayers may qualify for a refundable Additional Child Tax Credit.
  • Complete Form 8812 to claim the Additional Child Tax Credit.
  • The Earned Income Credit, or EIC is a refundable credit for workers who meet certain requirements and file a tax return.
  • Persons with or without a qualifying child may claim the EIC.
  • To claim the EIC, your filing status must be single, head of household, qualifying widow or widower or married filing jointly.
  • You cannot claim the EIC if your filing status is married filing separately.
  • Part of the interest expense paid by first-time homebuyers whose income is below median income for the area might possibly qualify for this credit.
  • This credit must be certified by state or local government to qualify.
  • Available for qualified tuition/and or related expenses of the taxpayer, the taxpayers spouse or dependent.
  • The Hope Credit is a nonrefundable tax credit available for the first two years of post secondary tuition and fees.
  • The Lifetime Learning Credit is a nonrefundable tax credit of qualified tuition and fees paid during the tax year. This credit is not limited to the first two years of post secondary education.
  • Always check to see which is best for your client - education expenses as an adjustment to income or as a credit to tax.
  • It may be advantageous for a parent who does not qualify for the education credit due to AGI limitation not to claim an eligible dependent so the student can claim the education credit on his or her return. Therefore, no one claims the dependency exemption.
  • This credit is allowed for low-income taxpayers, age 65 or older OR permanently and totally disabled.
  • If under age 65, taxpayer must be retired and on permanent and total disability. Taxpayer must receive disability income and not yet reached the age when their employers retirement program would have required them to retire.
  • If taxpayer had more than one employer and total wages were over the wage base limit for the year, excess social security or RRTA tax may have been withheld and can be recovered through filing income tax.
  • If any one employer withheld more than the wage base limit, the employer must refund the excess to the employee. It cannot be recovered on the income tax return.
  • Taxpayer must be at least age 18 by the end of the year, not be a dependent claimed on another person's return and not be a full time student.
  • Qualified individuals are allowed a nonrefundable credit for eligible contributions to an IRA or to an employer sponsored retirement plan such as a 401K.
  • The credit is in addition to any deduction or exclusion that would otherwise apply with respect to the contribution.
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