Common Tax Credits that Put More Cash in Your Pocket

The tax deadline is approaching. But if you still haven’t completed your taxes, that’s OK. You may want to take a few minutes to review often-missed tax deductions and credits that could help you save money. The Illinois CPA Society released this list of tax credits that may help put more cash in your pocket:

• The American Opportunity Credit: If your modified adjust gross income is $80,000 or less, or $160,000 or less for married joint-filers than consider this credit. It’s open to a broader range of taxpayers than previously, and worth up to $2,500 – with 40 percent of the credit being refundable up to $1,000 – for non-dependent students or parents. Required course materials are now included in the qualifying expenses and you can claim the full credit for four years.
• The Child Tax Credit: Taxpayers can claim a $1,000 credit for each dependent child that is less than age 17 as of December 31, 2011, including any adopted children. Your AGI must be under $110,000 or less if filing jointly or $75,000 if single. The credit is reduced for taxpayers with incomes above these amounts.
• Adoption Tax Credit: Did you adopt a child in 2011? Then you may be eligible for a credit of up to $13,360 per child based on your qualifying expenses. If you adopted a special needs child, you qualify for the credit regardless of actual expenses paid or incurred.
• Residential Energy Property Credit: Review any updates you made to your home in 2011. If you made any energy efficient home improvements to your principal residence in 2011, you could get a credit of up to 10 percent of the cost up to $500. This includes adding insulation, new energy efficient exterior windows and heating systems.