With potential tax breaks related to dependents, education, earning income and more, there’s no reason to miss out on tax credits that may give you a bigger tax refund. Tax credits may be more valuable than tax deductions because they reduce your tax liability dollar for dollar. You may even qualify for the Earned Income Tax Credit, which continues to be one of the most overlooked tax credits. Did you pay for a college education for you, your spouse, or your dependent? You may be eligible for the American Opportunity Tax Credit (formally the Hope Credit), or the Lifetime Learning Credit, which both offset some of the costs of college tuition.
For more helpful tax tips go to the TurboTax Blog.
– Lisa Greene-Lewis is a certified public accountant and TurboTax tax expert.
