Credits That Can Pay You at Tax Time by theyne

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									 IRS Tax Tips                                                                                  March 2, 2011


Useful Links:                Issue Number:               IRS Tax Tip 2011-43
IRS.gov Home                 Inside This Issue
1040 Central

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                                      Four Credits That Can Pay You at Tax Time
                             You might be eligible for a valuable tax credit. A tax credit is a dollar-for-dollar
                             reduction of taxes owed. Some credits are even refundable, which means you might
News Essentials              receive a refund rather than owe any taxes at all. Here are four popular tax credits you
                             should consider before filing your 2010 Federal Income Tax Return:

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                                 1.   The Earned Income Tax Credit is a refundable credit for certain people who
                                      work and have earned income from wages, self-employment or farming.
News Releases                         Income, age and the number of qualifying children determine the amount of
                                      the credit. EITC reduces the amount of tax you owe and may also give you a
IRS - The Basics                      refund. For more information see IRS Publication 596, Earned Income Credit.
                                 2.   The Child and Dependent Care Credit is for expenses paid for the care of
                                      your qualifying children under age 13, or for a disabled spouse or dependent,
IRS Guidance                          to enable you to work or look for work. For more information, see IRS
                                      Publication 503, Child and Dependent Care Expenses.
Media Contacts                   3.   The Child Tax Credit is for people who have a qualifying child. The
                                      maximum amount of the credit is $1,000 for each qualifying child. This credit
                                      can be claimed in addition to the credit for child and dependent care
Facts & Figures                       expenses. For more information on the Child Tax Credit, see IRS Publication
                                      972, Child Tax Credit.
Problem Alerts                   4.   The Retirement Savings Contributions Credit, also known as the Saver’s
                                      Credit, is designed to help low-to-moderate income workers save for
                                      retirement. You may qualify if your income is below a certain limit and you
Around The Nation                     contribute to an IRA or workplace retirement plan, such as a 401(k) plan. The
                                      Saver’s Credit is available in addition to any other tax savings that apply. For
e-News Subscriptions                  more information, see IRS Publication 590, Individual Retirement
                                      Arrangements (IRAs).

                             There are other credits available to eligible taxpayers. Since many qualifications and
                             limitations apply to the various tax credits, taxpayers should carefully check their tax
The Newsroom                 form instructions, the listed publications and additional information available at
                             IRS.gov. IRS forms and publications are also available by calling 800-TAX-FORM
Topics                       (800-829-3676).

Electronic IRS Press Kit
                             Links:
Tax Tips 2011
                                     1040 Central
Radio PSAs                           Publication 596, Earned Income Credit (EIC) (PDF 281K)
                                     Publication 972, Child Tax Credit (PDF 128K)
                                     Publication 503, Child and Dependent Care Expenses (PDF 167K)
Fact Sheets                                        Saver's Credit
                                                   Form 1040 Instructions (PDF 1,101K)
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