Preserve your income when you receive all possible tax credits with help from your Rancho Cucamonga, CA tax accountant

Tax time has been portrayed as something to dread. Indeed, when you worry that you may be losing out on significant savings, feeling anxious about filing your tax return is to be expected. Most people have the same goal, to preserve as much of their income as they possibly can. Your experienced accountant in Rancho Cucamonga, CA can help you claim all tax credits available to you, making it possible to feel much more confident as April approaches.

Credits vs. deductions

To really benefit from your tax filing, it pays to understand the various terms and how they apply to you. Working with a certified tax accountant is the best way to maximize your credits and deductions. A deduction is basically an expense that is used to lower your amount of taxable income. For instance, if your job requires you to drive long distances and does not directly reimburse you for your expenses, they can be deducted from your total income.

Credits are an excellent way to boost your refund. Different from a deduction, a credit actually lowers your taxes dollar for dollar. A child tax credit, for instance, is an immediate $1,000 refund for each qualified child under the age of 17 who lives at home. Other tax credits that your accountant may be able to obtain for you include:

• The American Opportunity Tax Credit may earn up to $2,500 for qualifying college students.
• The Lifetime Learning Credit may give the eligible student $2,000.
• Energy Savings Credits may be claimed for up to 30% of the cost of solar or wind energy equipment such as solar panels or water heating systems or small wind energy systems.
• Up to $3,000 may be used to calculate credits related to parental care. This Dependent Credit is similar to a child credit and is available to qualified individuals caring for a parent who cannot otherwise care for themselves.

Like tax laws, credits change frequently. Your tax accountant remains abreast of which laws and credits have changed and which have been eliminated. With some information from you, the team at Whyte and Associates can assess your situation and recommend the strategy that will give you the greatest financial benefit.

Schedule a time to sit down and discuss your tax filing options. Call (909) 575-0080 today.