As one of the most crushing and challenging parts of modern life, handling taxation without a CPA. If you are sick of trying to come up with some kind of tax master plan, then read on. When you work with a trusted accountant who understands your tax position and your challenges, they can help you find some of the most useful tax deductions out there.

Despite having lots of different kinds of tax, you can find some very useful tax deductions exist that, in the right circumstances, you can activate. Some of the most common deductions are;

Earned Income Tax Credits

This is a very powerful tax deduction, and one that you can potentially activate if you are over the age of 25, and younger than 65. This is an income-dependent tax that looks at various elements of your working life. It’s usually for people who are employed by a business, although self-employed people can qualify as well. It’s very useful for helping to cut back a decent little amount, when eligible.

American Opportunity Tax Credits

Another popular system is that of American Opportunity Tax Credits. This helps for people to pay the costs of higher education for families, and can be a good way to help build up that college fund for your kids. However, it takes a lot of time and planning to get the right finances in the deal – so be prepared to do a lot of hard work to get this one put through. If your income is $80,000 or less, then you can get as much as $2,500 back from the Government.

Savers Tax Credit

This helpful solution is made up for those who wish to try and make some form of long-term investment. Those with the least income get the best credit options. It’s a good way for low income people to start building up a good retirement account and to make sure they have the money that they need to live a happy and healthy life. This is going to be very important for the future, as more people on shorter-term and less table incomes try and build retirement funds.

Child & Dependent Care Credit

Another useful tax credit that you can get access to, this is for those with kids under the age of 13. It’s also there for those who looking after someone who cannot care for themselves. It can give you up to 35% of qualifying expenses, making it a useful ally for anyone who wants to make home life a little easier.

Lifetime Learning Credit

The last credit we want to look it as known as Lifetime Learning, and is used for those going to a further education cost – it’s available for any year of post-secondary school education, not just year one. The credit can be as much as $2,000 for those earning $55,000 or less.

To maximize each potential opportunity, be sure to hire an accountant. They’ll help you see what solutions benefit you most.

For more information, contact our San Diego CPA Firm.