What Are The List Of Tax Credits that I Can Qualify For In My Personal Taxes?

There are several tax credits that you may qualify for when you file your personal taxes for the year 2024.

Keep in mind that as opposed to a tax deduction, a tax credit is a dollar-for-dollar reduction in the amount of tax you owe. For example, if you owe $5,000 in taxes and you qualify for a $1,000 tax credit, your tax bill will be reduced to $4,000. Tax credits are generally more valuable than tax deductions because they directly reduce the amount of tax you owe.

It’s important to note that tax credits are generally more valuable than tax deductions, but not everyone will qualify for all tax credits or deductions. ,” shared Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®.

Here are some of the most common tax credits for 2024:

• Earned Income Tax Credit (EITC): This credit continues to assist low- to moderate-income workers. For 2024, the maximum credit is up to $7,830 depending on your income, filing status, and number of qualifying children. It is a refundable credit, meaning you could receive a refund even if you owe no tax.
• Child Tax Credit: For 2024, taxpayers with qualifying children under age 17 may be eligible for a credit of up to $2,000 per child. Up to $1,600 of that amount may be refundable depending on your income and tax liability.
• American Opportunity Tax Credit (AOTC): This credit remains available for qualified education expenses paid for an eligible student for the first four years of higher education. You can claim up to $2,500 per eligible student, with 40% of the credit (up to $1,000) potentially refundable.
• Lifetime Learning Credit: For 2024, this credit can be worth up to $2,000 per tax return for qualified tuition and related expenses for undergraduate, graduate, and professional degree courses—including courses to acquire or improve job skills.
• Saver’s Credit (Retirement Savings Contributions Credit): Taxpayers making eligible contributions to retirement plans such as a 401(k) or IRA may qualify for a credit up to $1,000 ($2,000 for married couples filing jointly). The credit rate depends on your income and filing status.
• Child and Dependent Care Credit: For 2024, taxpayers who pay for care of a child under 13 or a disabled dependent so they can work or look for work may be eligible for a credit of up to $3,000 for one qualifying individual or $6,000 for two or more. The credit is nonrefundable.
• Residential Clean Energy Credit: This credit replaces the prior Residential Energy Efficient Property Credit and now offers a 30% credit on the cost of installing qualifying clean energy systems like solar, wind, geothermal, and battery storage (through 2032).

It’s important to note that not all taxpayers will qualify for all of these tax credits. Additionally, there may be other tax credits available depending on your individual circumstances. It’s always a good idea to consult with a tax professional or use tax software to ensure that you’re taking advantage of all the tax credits for which you are eligible.

Remember that every person and every tax return is different, this is just a guide, please find the closest DATS location near you and do not hesitate to contact us. Daniel Ahart Tax Service will be open and ready to answer the phone or in person to clarify any doubts and to be able to guide you in the process,” explains Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®

Taking Care of your Crypto Taxes

Also, remember that if you have any crypto tax obligations for the 2024 tax year, you need to report it. Join the thousands of individuals in the State of Georgia that trust their taxes to Daniel Ahart each year!

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