9 Tax Breaks to Keep More Money in Your Pocket

9 Tax Breaks to Keep More Money in Your Pocket

Could you use a few credits and deductions? For sure—everyone could use a few more tax breaks.

Here’s a list of the nine best tax breaks to claim if you qualify.

Need tax breaks for daycare expenses? Use the Child and Dependent Care Credit.

This awesome credit goes for disabled adult dependents, too—the Child and Dependent Care Credit can pay you back for at least part of your care expenses for dependents who need it. The credit is worth up to $4,000 for one child or dependent, or $8,000 for the care of more than one person.

Want tax breaks as parents of babies, kids, and young teens? Use the Child Tax Credit.

The Child Tax Credit is automatically calculated based on the age of your child(ren) and your income level. It’s fully refundable and worth up to $3,000 for children between 6 and 17, and $3,600 for children under 6. Plus, if your dependent doesn’t qualify for the CTC, they could qualify for up to $500 as a nonrefundable credit.

Need help making low-to-moderate income stretch further? Use the Earned Income Tax Credit.

Also called the EIC, the Earned Income Tax Credit is aimed to help low- and moderate-income taxpayers who hold down jobs or are self-employed.

The credit is worth up to $6,728, and the amount varies based on income, number of qualifying dependents, and age of the taxpayer.

Looking for a reward for making retirement contributions? Use the Saver’s Credit.

The Saver’s Credit gives you a bit more incentive to save for retirement. It gives taxpayers who are saving toward retirement a credit of up to $1,000 (twice that for married couples). You qualify by contributing to a qualified retirement plan such as a 401(k) or IRA.

Want tax breaks as a current student or a recent grad with student debt? Check out the two major education credits.

There are two major Education Credits that students and new grads should look into.

The American Opportunity Tax Credit is for expenses at a qualifying institution for the first four years of college and is worth up to $2,500

The Lifetime Learning Credit is aimed at those working toward a post-graduate degree, or a taxpayer who takes courses over a number of years. The Lifetime Learning Credit is worth up to $2,000.

Need a hand paying state and local taxes? Use the SALT Deduction.

The State and Local Taxes Deduction (SALT) is great if you live in an area with state income tax, local income tax, or state and local sales tax. You can deduct at least part of those taxes from your taxable income up to $10,000.

Looking to save based on green home modifications? Use the Residential Energy Tax Credits.

Check out the Residential Energy Tax Credits if you've installed energy-producing systems in your home such as solar, wind, or fuel cell. The credit is calculated from the total cost of qualified property depending on the year it was placed in service, and it’s limited to an overall lifetime credit limit of $500.

Donated to a non-profit in 2021? Use the Charitable Expense Deduction.

The Charitable Expenses deduction lets you deduct cash donations, property contributions, unreimbursed expenses from volunteer work, and even donations of clothing and food items.

Also, for tax year 2021, you could qualify for an above-the-line deduction worth up to $600 for cash donations to a qualifying charity.

Need a boost after betting on the wrong team? Use the Gambling Losses Deduction.

The Gambling Losses Deduction is great for those who didn’t turn out so lucky. Deductible losses are limited to the amount of your winnings, so if you lost $2,000 to win $500 on the slot machines, for example, you’ll declare the $500 as income – and can claim $500 in losses as a deduction.

1040.com finds tax breaks so you don’t have to

Here’s the thing—when you file with 1040.com, we actually grab all these tax breaks for you in the background as you fill out our simple questionnaire. No need to go hunting them down as you file!

Our job is to save you as much as possible on your taxes owed, getting your maximum refund for just one flat rate of $25.

Feels good, doesn’t it?

We’ll see you there—just sign up or log in to get started.