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Question
What credits can I use if a family of 2, no children.
AI accountant’s answer:
As a family of two without children, you may be eligible for various tax credits, which can help lower your tax liability. Some of the potential tax credits include: 1. Lifetime Learning Credit: If either of you is enrolled in higher education courses, you might qualify for the Lifetime Learning Credit. This credit can be worth up to $2,000 per year for qualified education expenses. 2. American Opportunity Tax Credit (AOTC): If either of you is a qualified student pursuing higher education, you could be eligible for the AOTC. This credit is worth up to $2,500 per student for the first four years of college. 3. Saver's Credit: If you contribute to a qualified retirement plan or IRA, you may be eligible for the Saver's Credit. Depending on your adjusted gross income, the credit can range from 10% to 50% of your eligible retirement contributions, with a maximum credit of up to $1,000 per person. 4. Premium Tax Credit: If you purchase health insurance through the Marketplace and meet the income requirements, you may qualify for the Premium Tax Credit. This credit helps offset the cost of your health insurance premiums. 5. Residential Energy Credits: If you make energy-efficient home improvements, you might be eligible for the Nonbusiness Energy Property Credit and the Residential Energy Efficient Property Credit. These are just a few examples of the tax credits that might be available to a family of two without children. Your specific eligibility will depend on factors such as income, filing status, and expenses. Be sure to review the requirements for each credit and claim the ones you qualify for when preparing your tax return.
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Judah Broussard, EA, JD
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