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IRS lists valuable tax credits

Published On: Jan 17 2012 04:07:22 PM CST
Updated On: Mar 16 2011 05:13:29 AM CDT
Tax credits

The Internal Revenue Service has listed some credits on its website that can cut your tax bill or boost your refund.

According the IRS, tax credits can help you pay the cost of raising a family, going to college, saving for retirement or getting daycare so you can work or go to school. The agency suggests that you review your records now and see if you can get one of these popular but often-overlooked credits.

Earned Income Tax Credit (EITC): If you?re trying to make ends meet on about $41,000 or less, you may be eligible. The EITC helps low- and moderate-income workers and working families.

Child Tax Credit: If you have a dependent under 17, you probably qualify. This credit is in addition to the regular exemption you can claim for each dependent.

Credit for Child and Dependent Care Expenses: If you pay someone to care for your child so you can work or look for work, you probably qualify. Care for a spouse or dependent who cannot care for himself or herself also qualifies.

Education Credits: The Hope credit and the lifetime learning credit help parents and students pay for post-secondary education.

Saver's Credit: This credit helps low-and moderate-income workers save for retirement. Put money in an IRA or 401(k) and you may be able to get this credit.