Earned Income Tax Credit

• The earned income tax credit is a tax cut benefit for low-wage earners. Low wages are considered anything under $12, 880 with no qualifying child. People with one qualifying child must have wages of $33, 995, and $38, 646 for those with two qualifying children. It is called the earned income tax credit because you must have earned income from being employed or self-employed to receive the tax credit. Those over the age of 25, but under the age of 65 will qualify. You may not be a qualifying child or dependent of another person who will claim you on their taxes. An individual needs to have lived in the United States for more than a year in order to qualify for this tax credit. The earned income tax credit gives you the benefit of having your employer credit your paycheck throughout the year, rather than having to wait until the end of the year to have your credit applied.
  
  

First Time Homeowners Tax Cut

• First time buyers are eligible for the first time homeowner tax credit, valued up to $7,500. To qualify for this credit, you or your spouse may not have owned a home within the last three years, and you must live in the home the majority of the time, making it your principal residence. There are also income limit requirements. To receive the full credit, your income must be $75,000 or less for single or head of household filers, and $150,000 or less for married couples filing jointly. The limits for those who receive partial credit are $75,000 to $95,000 for single and head of household filers, and $150,000 to $170,000 for married couples who file jointly.
  
  

Teacher Tax Credits

• The federal government allows educators to deduct up to $250 each year on school-related expenses paid out of pocket. These expenses can be books purchased or classroom supplies. Known as the teacher tax credit, this tax cut is available to all teachers from kindergarten to 12th grade and also extends to principals, counselors, teacher aides and other instructors.
  
  

Home Energy Tax Cut

• Those who go green and save on energy not only help the environment and our natural resources, but they can earn a tax cut called the home energy tax credit. If you have had energy-efficient repairs or home improvements made, you may qualify for the $1,500 credit. Some examples of these repairs or home improvements include installing an energy-efficient air conditioner, boiler or furnace.
  
  

Hope Learning Educational Credit

• The Hope Learning Educational Credit is available to those families who pay college tuition. The amount of the tax credit received depends on the amount of qualified expenses, and the amount of tuition you paid for each eligible student. An eligible student can be you, your spouse, your child or any dependent you claim as an exemption on your tax return. Examples of qualified expenses are room and board, student activities, transportation, and insurance. The amount of your modified adjusted gross income is also a factor in determining your credit amount.