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One of the most important federal tax guides every tax payer should know is the federal income tax credits. This type of income-based incentive that reduces the amount of tax owed by an individual to the federal government. Eligible tax payers who do not have tax debts can as well take advantage of this tax reward.
Types of Income Tax Credits
To find out whether you are qualified, check this list of the most common tax incentives that falls on the federal income tax credits category:
Earned income tax credit (EITC) - A tax credit given to individuals and families with low to moderate income. In the event the calculated EITC is higher than the tax owed, a tax refund will be given to the claimant.
Federal energy tax credit - A tax credit awarded to homeowners or business owners who implement energy efficient improvements of their homes and companies. It is also offered to car owners who purchased hybrid vehicles after December 31, 2005.
Federal tuition tax credit - Also known as education tax credit, this tax incentive is intended to cover educational related expenses of the qualified tax payer. It can be availed through the "Hope Credit" and the "Lifetime Learning Credit" programs.
Federal historic preservation tax credit - A tax credit granted to private companies that rehabilitate historic commercial buildings.
Types of Income Tax Credits
To find out whether you are qualified, check this list of the most common tax incentives that falls on the federal income tax credits category:
Earned income tax credit (EITC) - A tax credit given to individuals and families with low to moderate income. In the event the calculated EITC is higher than the tax owed, a tax refund will be given to the claimant.
Federal energy tax credit - A tax credit awarded to homeowners or business owners who implement energy efficient improvements of their homes and companies. It is also offered to car owners who purchased hybrid vehicles after December 31, 2005.
Federal tuition tax credit - Also known as education tax credit, this tax incentive is intended to cover educational related expenses of the qualified tax payer. It can be availed through the "Hope Credit" and the "Lifetime Learning Credit" programs.
Federal historic preservation tax credit - A tax credit granted to private companies that rehabilitate historic commercial buildings.
