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An IRS tax credit that may be available to you can be researched by contacting the IRS directly. Prior to calling the IRS or sending a general information email to IRS.gov, you may be able to find the information that you need, including forms and filing instructions, on their website.
IRS.gov
The IRS provides detailed information online via their website regarding the different tax credits available to taxpayers. Tax credits are used to reduce a taxpayer’s adjusted gross income (AGI) in order to determine their taxable amount. The more credits that a taxpayer can apply to their AGI, the lower their tax debt should be to the IRS.
Looking up Tax Credit Information
The reason why it makes sense to look up information about tax credits first before contacting the IRS is so you know which credits you should be requesting information. With the many tax credits that are available, not all credits apply to every taxpayer. It would be somewhat silly to call the IRS and ask, “What tax credits are available?” without knowing what credits apply to your situation.
Earned Income Tax Credit Example
For example, low income earners may qualify for what is known as the earned income tax credit (EITC). This credit provides a prepayment of money that the taxpayer is eligible for and can use to ease the burden of being a low income wage earner. This is especially important for poor workers with dependent children. This tax credit applies to those earners who are at or below the federal poverty level. It wouldn’t make sense to request information from the IRS or make an inquiry about EITC if you do not meet the income requirements for the credit.
Education Tax Credit Example
Individuals who attend a college or university may qualify for a lifetime learning opportunity credit or HOPE tax credit. These credits act as an offset for the cost of obtaining a higher education, based on certain qualifications. This is an important program for many taxpayers, except those who are not attending school or have a dependent who is attending school. Looking this information up through the IRS.gov website will eliminate any potential embarrassment associated with asking the question.
IRS Publications
The IRS.gov website can also provide you with the direct contact information for the credit that is of interest to you or applicable to your situation. Many times an associated publication that is listed on the website will contain all of the information that you need to know about a tax credits. There are energy tax credits, education credits, credits for the purchase of a hybrid car, credits for first-time homebuyers. There are so many credits that are available that you need to be able to hone your search to those areas that are of most benefit to you.
Using an Accountant or Tax Software
Another point of contact can be a tax professional or accountant who specializes in individual tax preparation. There is also tax preparation software that is available commercially such as Turbo Tax and TaxAct that can prompt you with information concerning tax credits based on your tax filing information. Using a human or computer to determine the types of tax credits that you may be entitled to may also help you determine the best way to contact the IRS for additional information, if necessary.
