Obstructed View

A new episode in your life.

September 30, 2011

Income Tax Relief

Posted in Clear Outlook

Times are tough. Jobs are scarce, money is tight. Good thing is, for American taxpayers there are a number of helpful ways to buffer your financial situation this year. Ever heard of the “make work pay tax credit”?

It basically cuts taxes on 95% of American working individuals and families. You can either opt to have less taken from your paychecks throughout the year, or have it given back to you at the end of the year when filing taxes. Well it’s just one of the ways you can save a bit more cash.

Here are some more examples of tax relief efforts this year:

Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits:

 

  • A one time payment of $250 issued to recipients of social security, SSI, railroad retirement, veterans disability receiving compensation from the U.S. department of veteran affairs

    •  

    Refundable Credit for Certain Federal and State Pension Recipients:

     

  • A one time tax credit of $250

    •  

     

  • For government retirees who are not eligible for social security benefits

    •  

     

    Increase in Earned Income Tax Credit:

     

     

     

     

     

  • Temporarily increases the earned income tax credit for working families with three or more children

    •  

     

  • Current law says that for working families with two or more children qualify for a tax credit equal to 40% of the families first $12,570 of earned income

    •  

     

  • Working families with three or more children will see that 40% rise to 45% of their first $12,570

    •  

    American Opportunity Education Tax Credit

     

  • Will provide financial assistance to individuals seeking a college education

    •  

     

  • A tax credit of up to $2,500 for tuition and related expenses for the taxable year

    •  

     

  • You can receive 100% of the first $2,000 for tuition and expenses

    •  

     

  • And 25% of the next $2,000

    •  

    To learn more about the many ways you probably qualify for some help on your taxes this year, check out TurboTax Online. Learn More about how to compute income taxes.