With the start of a new year, millions of taxpayers across America get ready to file their taxes in time to avoid penalties, but also to enjoy some of the multiple tax credits available for them.
The pandemic started a trend in which individuals have been receiving bigger tax refunds than before, given the emergency funds that were handed out to help residents go through the pandemic.
This year there will be four major tax credits that most of taxpayers will be able to apply for, according to The Sun: earned income tax credit, child tax credit, solar tax credit and electric vehicle tax credit.
Earned Income Tax Credit
With the earned income tax credit, individuals and households making low to moderate income can apply to receive $600 per indiviual, while families can access to $3,955 for one child, $6,604 for two or $7,430 for three or more children.
This tax credit will be deducted from the taxes an individual has to pay or added to their refund at the end of year.
Child Tax Credit
The child tax credit is perhaps the most known tax credit available. This popular tax credit was not changed at a federal level for this year and will remain at $2,000 per qualifying infant.
Those who want to claim a child tax credit cannot have an income over $200,000, with this amount coming up to $400,000 for the married couples that file their taxes jointly.
Some states even offer their own child tax credit, so some lucky Americans will be able to receive double benefits from this tax credit.
Solar Tax Credit
The US government is marching towards a more green energy run country in the next few years, that’s why they also have tax credits available to those who change their old appliances for more efficient ones, with homeowners and renters being able to receive up to $8,000 for the purchase.
This is all part of the Inflation Reduction Act that was put in place in August, which also offers the payment of 30% of the installation costs for a solar rooftop system.
Electric Vehicle Tax Credit
Taxpayers who acquired an electric vehicle costing less than $55,000 could be eligible to receive $7,500 in tax credits, as long as they earned less than $150,000 as a single filer.
Couples who file jointly have a $300,000 limit.
An electric van or pickup truck can have a price up to $80,000 and still be eligible for this tax credit.