Tax Tips: Commonly Missed Credits and Deductions for 2024

Key Tax Deadlines and Refunds

• ⏰ The tax filing deadline is Tuesday, April 15th, giving procrastinators just under a month to submit their returns.
• 💰 The average tax refund check is over $3,000, and the IRS expects to issue over 120 million of these checks.

Commonly Missed Deductions

• 🏠 Homeowners can deduct interest on mortgages and a portion of household expenses if they work from home, including rental expenses, mortgage interest, property taxes, and utilities based on the space used.
• 🎓 Students and parents can deduct up to $2,500 in student loan interest paid on federal or private student loans, especially relevant now that payments have resumed.

Valuable Tax Credits to Claim

• 👨‍👩‍👧‍👦 The Earned Income Tax Credit can be substantial, offering up to $7,830 for a family with three children.
• 📚 The American Opportunity Tax Credit provides up to $2,500 for undergraduate college students to cover educational costs like textbooks and tuition.
• 📈 Savers may be eligible for the Savers Tax Credit, offering up to $1,000 for contributions to retirement accounts like IRAs or 401(k)s.

Green Energy Tax Incentives

• 🚗 New electric vehicles can qualify for a Clean Vehicle Tax Credit worth up to $7,500.
• 💡 Under the Inflation Reduction Act, energy-efficient home upgrades are expanded: credits are available for eco-friendly windows and doors (up to $1,200), solar water heaters (up to $2,000), and 30% back on solar panel investments.
• 💸 Remember that tax credits directly reduce the amount of taxes you owe, dollar for dollar.