Tax Credits – Do You Qualify?

Each year taxpayers claim a variety of tax credits for which they are eligible. Tax credits are valuable because they are a dollar-for-dollar reduction of taxes owed.

1) The Earned Income Tax Credit is a refundable credit for low-income working individuals and families.

2) The Child and Dependent Care Credit is for expenses paid for the care of children under age 13, or for a disabled spouse or dependent.

3) The Child Tax Credit is for people who have a qualifying child. The maximum amount of the credit is $1,000 for each qualifying child in 2006.

4) The Adoption Credit is a tax credit of up to $10,960 in 2006 for qualifying expenses paid to adopt a child.

5) The Credit for the Elderly or the Disabled is a credit available to individuals who are either age 65 and retired on permanent and total disability.

While the numerous credits make filing taxes complex, rest assured a full review will ensure you receive all the "credits" you deserve.