Easy Tax Credits and Deductions that Help you Save Money

Tax season can be a stressful time. Many people dread it, and some people look forward to a refund. When doing your taxes, it is important to get all the tax breaks that you are entitled to. Therefore, you need to be aware of the tax deductions that are available to you. Here are some easy claims and tax credits and deductions that can help you save big time.

1. Residential Energy-Efficient Property Credit: You can save money when you use hot water heaters, solar electric equipment, wind turbines, and fuel cell property. The amount does not have a limit. The home is required to be in the United States, but it does not have to be your primary residence. The tax break is 30% of the cost of alternative energy installed in your residence


2. American Opportunity Tax Credit: This is one of the tax deductions that you could qualify for if you are in college. You need to have attended college for at least one semester and have expenses, such as books, tuition, fees, etc. You can get up to $2,500 each year on your taxes.


3. Premium Tax Credit: This is one of the easy claims that you can take advantage of if you bought health insurance through the Health Insurance Marketplace. If you were not eligible for other types of health insurance, you might qualify for this deduction.


4. Wedding: If you get married at a place that is considered a charitable organization, you could be able to deduct what you pay to have your wedding at the venue. Some organizations might include historical churches, museums, or national parks. If the bride donates the dress to charity, it can be used as a deduction on your taxes.


5. Summer Camps: If you sent your child to a summer camp, you could qualify for the Child and Dependent Care Credit. You can claim up to 35% for what you paid for the camp. The maximum amount is $3,000 for one dependent and $6,000 for two. This is for children under the age of 13.


6. Moving Expenses: If you moved during the year, you can deduct the expenses if they were not paid by your employer. You can deduct travel costs, shipping, and temporary storage of your belongings.


7. Non-family dependents: If you supported someone other than your family, such as a girlfriend, you can claim them as a dependent. They must have lived with you full time and cannot make more than $4050.


8. The savers credit: If you saved for retirement, you are eligible for this credit. If you contributed to a retirement account, you could get a credit up to $1,000.

Paying too much on your taxes is unnecessary. Each year, thousands of people pay too much because they do not know about all the tax breaks that are offered. Just a few easy claims can help you save big time. You can then use the money for other things that you need.

William Doonan is a tax law and legal expert in New York.