As tax season approaches, Americans get ready to file their tax returns. Relevant to this, tax credits are also being prepared for eligible citizens.
Tax Credits for Americans to Start the Tax Season
Since the pandemic hit, people receive larger tax returns through allotments and enhanced tax credits. But since COVID-19 started dying out, these tax credits also go with it. As stated in a post by The US Sun, tax returns get smaller but there are some ways to maximize the amount you receive while lowering your tax bill.
First off the bat is the Earned Income Tax Credit. This credit is for low to moderate-income households. Families with one child are eligible for $3,955 while those with two get $6,604. Families with three or more children get $7,430.
Next is the Child Tax Credit which is one of the most popular among all claimable credits. The amount taxpayers can get from this is $2,000 per qualified child. For parents to qualify, they must have a modified adjusted gross income of $200,000 or less. Married couples must have a $400,000 or less joint income.
Other Claimable Tax Credits
Taxpayers could also claim up to $8,000 from the Solar Tax Credit. This is for homeowners and renters who purchased energy-efficient appliances. The main reason for this tax credit is the Inflation Reduction Act to cover 30 percent of the costs of rooftop solar panels.
Another one is the Electric Vehicle Tax Credit which covers those who bought electric vehicles. Single filers earning $150,000 or less and couples filing jointly earning less than $300,000 can get $7,500 for buying a new electric vehicle. The cost requirement for claiming is $55,000 or less or $80,000 for a van or pick-up.