Be aware of the tax credits that may be available this tax season
Taxpayers who are filing their first return as an independent this tax season may be able to take advantage of credits available to them that could substantially increase their refund, according to Jackson Hewitt Tax Services.
“Many taxpayers become independent and begin to file on their own after graduating from college, and one of the most common areas to look for tax benefits is with education,” said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. “If they had student loans, they should remember to claim the interest paid when filing. If they are still in school and paying their own tuition and fees, that’s another area to be sure not to miss.”
Some of the credits that may be available to independent first-time filers are a Retirement Savings Credit, which is eligible to those who invest in an IRA or pension plan through their employer, and a Making Work Pay credit that provides up to $400 for single filers who are employed.
Jackson Hewitt also warned those who have recently moved to the U.S. to properly determine if they need to file a tax return if their total worldwide income reaches a certain level or had any U.S. source of income.