CAROLINA FOREST, SC (WMBF) If you're still trying to get your taxes together in time, there may be some things you're missing out on, and it's costing you money. So many Americans are paying more every year because they're not aware of the different tax credits out there. The IRS says the average American misses up to six thousand dollars in tax credits, like ones based on income.
But after talking with tax experts, WMBF News found that paying attention to tax credits can keep you from losing thousands of dollars to the government. It's important to stay on top of tax credits and deductions, because one year it's here, and the next it could be gone. For example, this year a lot of married couples filing together will miss out on an 800 dollar tax credit, because the "Making Work Pay" credit has expired.
But there are some credits you can still take advantage of before you file: Parents can get up to one thousand dollars just for having a child under 17. You can get a lot more if your child is in college--we're talking 4 thousand dollars. If you did any home improvement projects, you can get 500 dollars.
These are just a few of the easy ways to save. Local CPAs say it pays to pay attention to these options. "Credits are a lot more generous the last couple of years," said James McIlrath, CPA. "And so those people are getting benefits that they wouldn't have gotten under prior tax codes. So we have some people that are getting more back than what they'd expected."
If you are ever confused on what can be used as a deduction, you should always think like this-- It can be anything that is necessary for you to spend to bring in money. For example, if you have a job that requires you to do a lot of driving, you can get a deduction of up to 50 cents a mile.