Many taxpayers miss valuable tax credits simply because they are unaware of them. Credits reduce your tax bill dollar for dollar, making them one of the most powerful tax benefits available.
Commonly Overlooked Federal Tax Credits
Some credits frequently missed include:
- Earned Income Credit
- Child and Dependent Care Credit
- Education credits
- Retirement savings contributions credit
Eligibility depends on income, filing status, and household circumstances.
New York State Tax Credits to Know
New York offers several credits that taxpayers often overlook, such as:
- Empire State Child Credit
- Household Credit
- College tuition credit or deduction
- Property tax related credits
These credits can significantly reduce state tax liability.
Why Taxpayers Miss Credits
Credits are often missed due to:
- Incorrect filing status
- Incomplete information provided to the preparer
- Using outdated software or DIY filing without guidance
Maximizing Credits Through Professional Preparation
Working with a professional ensures all available credits are reviewed and applied correctly.
BD Tax LLC reviews each return carefully to help clients claim every credit they qualify for.