Understanding tax credits and deductions can be confusing, but they can also be a great way to save money on your taxes. If you live in Orange County, it’s important to understand the tax credits and deductions available to you so that you can take advantage of them and potentially lower your tax bill.
One common tax credit is the Earned Income Tax Credit (EITC). The EITC is a credit for low- and moderate-income earners, and the amount of the credit is based on your income and the number of dependents you have. The EITC can be a significant source of tax savings for eligible taxpayers.
Another tax credit that may be available to Orange County residents is the Child and Dependent Care Credit. This credit is available to taxpayers who pay for someone to care for a qualifying child or dependent while they work or look for work. The credit is based on the amount of money you spend on child care, up to a certain limit.
In addition to credits, there are also deductions that can reduce your taxable income. One such deduction is the charitable donations deduction, which allows you to deduct charitable contributions you make to eligible organizations. To claim this deduction, you must itemize your deductions on your tax return.
Other common deductions available to Orange County residents include the mortgage interest deduction, the property tax deduction, and the medical and dental expenses deduction. These deductions can also help lower your taxable income and reduce your tax bill.
If you’re having trouble understanding tax credits and deductions or need help preparing your taxes, consider reaching out to Robert Hall & Associates. We have just launched an Orange County office and are available to assist with all your tax needs. Our team of experienced professionals can help you take advantage of all the credits and deductions available to you, ensuring that you pay the lowest tax possible. Contact us today to learn more.