Official lists four ‘valuable’ tax credits

Thursday, March 18, 2010

Official lists four ‘valuable’ tax credits

By Capt. Tracy G. Mueller

Walter Reed Tax Center

You may be eligible for a valuable tax credit this year. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are even refundable, which means you might receive a refund rather than owe any taxes at all. Here are four popular tax credits you should consider before filing your 2009 Federal Income Tax Return:

The Earned Income Tax Credit is a refundable credit for certain people who work and have earned income from wages, self-employment or farming. 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 refund. For more information see IRS Publication 596, Earned Income Credit.

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, to enable you to work or look for work. For more information, see IRS Publication 503, Child and Dependent Care Expenses.

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 expenses. For more information on the Child Tax Credit, see IRS Publication 972, Child Tax Credit.

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 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 more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs).

For more information about these credits, please visit the Walter Reed Tax Center, which is in Bldg. 1, Rm. B-107, next to the Barber Shop and Burger King. The Tax Center will see clients by appointment only. To schedule an appointment, call (202) 356-1012, Ext. 40352.

The Tax Center offers free tax assistance, to include preparation and electronic filing of federal and state tax returns. If eligible for electronic filing, the filer will receive any refund they may be owed by direct deposit within seven to 14 days.

Filers eligible for assistance at the Tax Center are active duty members and their dependents, widows and widowers and dependents of Operations Iraqi and Enduring Freedom Soldiers, reservists on active duty for more than 30 days, and retirees on a space available basis.

The following filers will not be eligible for assistance at the Tax Center:

Filers who are self-employed or own a business, with the exception of certified Family Child Care (FCC) providers.

Filers owning more than one rental property.

In addition, subject to personnel availability and workload, the officer in charge of the Tax Center reserves the right to decline to provide services to customers with more than five individual stock trades during the tax year.