TAX CREDIT — reduces taxes owed, no cash up front
A tax credit that lowers what you pay each month for a Marketplace health plan. It is a tax credit, not a grant — which matters, because it is calculated on the income you ESTIMATE for the c…
TAX CREDIT Amended return (Form 1040-X) — claiming a credit you missed in an earlier yearInternal Revenue ServiceIf you were eligible for EITC, the Child Tax Credit or another refundable credit in a past year and did not claim it, the money is usually still claimable. You file Form 1040-X for that year…
TAX CREDIT Child and Dependent Care CreditInternal Revenue ServiceIf you paid someone to care for a child under 13, or for a spouse or dependent who cannot care for themselves, SO THAT you could work or look for work, part of what you paid comes back as a …
TAX CREDIT Child Tax Credit and Additional Child Tax CreditInternal Revenue ServiceThe Child Tax Credit is worth up to $2,200 per qualifying child. Most of it only reduces tax you owe — but the ADDITIONAL Child Tax Credit is the refundable piece, up to $1,700 per child, pa…
TAX CREDIT Earned Income Tax Credit (EITC)Internal Revenue ServiceA refundable tax credit for people who worked and did not earn much. Refundable is the load-bearing word: it is not merely a reduction in tax owed, so if the credit exceeds your tax you get …
TAX CREDIT Saver’s Credit (Retirement Savings Contributions Credit)Internal Revenue ServiceIf you put money into a 401(k), IRA or ABLE account on a low income, the IRS gives you back 50%, 20% or 10% of up to $2,000 of what you contributed ($4,000 married filing jointly) — a credit…
Not financial or legal advice. Program terms change — verify eligibility, amounts, and deadlines with the administering agency before acting.