Do You Qualify for Tax Credits?

Tax credits can help either lower a taxpayer’s bill or increase a refund. Many taxpayers don’t even realize they’re eligible for these credits, or they overlook them.

• A taxpayer who has a dependent child under age 17 probably qualifies for the child tax credit. This credit, which can be as much as $1,000 per eligible child, is in addition to the regular $3,650 exemption claimed for each dependent. The child tax credit is not the same as the child care credit.
• An individual who pays for someone to care for a child so he or she can work or look for work probably qualifies for the child and dependent care credit. Normally, the child must be the taxpayer’s dependent under age 13. Though often referred to as the child care credit, this credit is also available to those who pay someone to care for a spouse or dependent, regardless of age, who is unable to care for him- or herself.
• As part of its plan to stimulate the U.S. housing market, Congress has passed legislation that:
  • Extends the First-Time Home Buyer Tax Credit of up to $8,000 until April 30, 2010²
  • Expands the credit to grant up to $6,500 to current homeowners purchasing a new or existing home between Nov. 7, 2009, and April 30, 2010²

Edward Jones does not provide tax or legal advice. You should contact a qualified tax professional regarding your particular situation.

¹www.irs.gov
² Home purchase transaction must close by June 30, 2010, and a purchase contract must be in place by April 30, 2010, to claim the applicable tax credit.