We all hunt for the best deal when we go shopping, so why not look for bargains during tax season?
Whether you're a parent, business owner or just going green at home, there are ways to save. Here are some smart credits and deductions to know about in Tuesday's tax tip.
Kids are expensive, it but turns out when tax season rolls around it pays to be a parent thanks to the child tax credit. Each child claimed as a dependent earns you a credit up to $1,000. And if you're paying for childcare, potentially even more. Plus, the credits don't stop when your teenager goes away to college.
"The biggest of those is the American Opportunity Credit, good for the first four years of secondary education. That can actually put $2,500 into your pocket," said senior tax advisor Richard Garland.
If you're a small business owner, check into something called section 179, which allows businesses to deduct purchases of equipment or software.
One of the most popular uses is buying a new vehicle. If you use that car, SUV or truck for business at least half the time, it can qualify. Now the fine print is important. It can be new or used as long as it's new to you. Size also matters. On some SUVs you can expense up to $25,000.
For homeowners, it's a good time to go green. The IRS includes some big credits for renewable energy. And it's worth it, up to 30 percent for things like solar panels or wind energy, even insulation. Protecting your home can also protect your pocket.
Another good one to check is the earned income credit. It can be worth up to $6,000 for some families, and one in five people who are eligible don't take it.
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