WHAT TAX CREDITS CAN I CLAIM IN 2022?
- Guy-Stephane Amanzoureth Yao Aka
- Jan 9, 2022
- 3 min read
Updated: Jan 24, 2022
TAX SEASON IS UPON US!
Here at Firenzanita, we aim to provide you with as much value as possible. Whether you will be filing on your own or using the help of a professional, here is a list compiling some of the Tax credits you might be eligible for :
EITC (Earned Income Tax Credit)
The EITC is a credit designed to provide a tax break and help low- to moderate-income Individuals and families. There are several instances where this credit allows taxpayers to obtain a tax refund. To qualify for the EITC, the following MUST apply to you:
You have worked and earned income under $57,414
You Have investment income below $10,000 in the tax year 2021
You Have a valid Social Security number by the due date of your 2021 return (including extensions)
You are a U.S. citizen or a resident alien all year
AOTC (American opportunity Tax credit)
AOTC is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.Should you be eligible for it, this credit allows You to get a maximum annual credit of $2,500 per eligible student. You can also get up to $1,000 refunded to you.
To be eligible for this credit, the eligible student MUST:
Be pursuing a degree or other recognized education credential
Be enrolled at least half time for at least one academic period* beginning in the tax year
Not have finished the first four years of higher education at the beginning of the tax year
Not have claimed the AOTC or the former Hope credit for more than four tax years
Not have a felony drug conviction at the end of the tax year
Lifetime Learning Credit
The lifetime Learning credit allows an eligible taxpayer to obtain a credit for qualified tuition and related expenses paid when enrolled in an eligible educational institution. Unlike the AOTC, There is no limit on the number of years you can claim the credit and you will get up to $2,000 per tax return. An eligible student MUST:
pay qualified education expenses for higher education.
pay the education expenses for an eligible educational institution.
The eligible student has yourself, your spouse or a dependent you listed on your tax return.
Child and Dependent Care Tax Credit
This tax credit may help you pay for the care of eligible children and other dependents (qualifying persons). It takes into accounts different variables such as the taxpayer’s income and the expenses incurred to care for eligible dependents. You will be happy to know that this credit may grant up to $4,000 per qualifying dependent( a child under 13 whose care was provided for, or a dependent or spouse over 13 mentally or physically unable to care for themselves). Requirements to claim this credit are the following:
You must have earned income, such as wages from a job or from self employment.
If you are married and filing a joint tax return, your spouse must also have earned income.
Your filing status is Single, Married Filing Jointly, Head of Household, or Qualifying Widow(er) with a Dependent Child.
In addition to this:
You paid someone to provide care for a qualifying person and the care provider was not someone you could claim as a dependent, the parent of your qualifying person, your spouse, or your child under the age of 19
You had to pay for child or dependent care so that you (and your spouse if married filing jointly) could work, seek employment, attend school, or if you were disabled.
Premium Tax Credit:
If you received insurance through the marketplace, this credit is for you! It allows you to cover the premiums for your health insurance as well as your family. To qualify for it it, you must satisfy the following requirements:
You cannot be claimed as a dependent by another person.
You have health insurance coverage through a Health Insurance Marketplace.
You are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value.
You are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.
You Paid the share of premiums not covered by advance credit payments.
Qualified Plug-In Electric Drive Motor Vehicles credit:
This credit is limited to $7,500 for one vehicle and is provided through the Internal Revenue code Section 30D. Your vehicle must be acquired after 12/31/2009 to be eligible. Just in case you would want to acquire of these eligible vehicles, please check this link out:
These are mainly the credits available to you as an individual taxpayer, so please make sure to verify your eligibility for these as they can tremendously reduce your tax bill. Of course, there are several other credits available out there for eligible businesses, but that is another matter. If you are in need of professional assistance for your taxes this year, please consider giving us a call as we are delighted to assist you.
Firenzanita out!
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