New Tax Brackets For 2024: Americans Can Count On Tax Credits To Bring In  Thousands

child tax credit

Income tax filers in the upcoming tax season could leverage multiple credit opportunities to save thousands in potential taxes.  The financial release measures, especially as the stimulus checks have ended after the third round of federal payments, states have continued to support residents during the inflation of 2022. But the IRS continues to give out tax credits which could have a strong bearing on your taxes.

The IRS will give out multiple annual tax credits to eligible income tax filers. They range from energy and environment initiatives to support of families and their dependents.

Before you explore the tax credits for 2024, you need to consider the nature of each one of them. The IRS has a dollar-for-dollar tax credit that taxpayers can make claims on the income tax file to directly bring down the money they owe to the federal government by way of income tax and perhaps even fines and penalties.

Type Of Tax Credits May Vary Each Year

There are both refundable and non-refundable credits for income tax filers. Refundable tax credits give taxpayers the chance to collect the inference if the tax credit amount is more than the tax bill. This potentially increased their tax refund amount.

On the contrary, the non-refundable tax credits could lead to a reduction in the income tax amount to nil. But these do offer any tax refund if there is a credit component to this amount.

The tax credits vary each year both in type and availability. Leading tax specialists say that it is important that income tax filers should review and reconsider each option and choose the one tailor-made for them before they file their income tax returns. One of the key credits is the CTC payments. The Child Tax Credit could bring in $2,000 per child under seventeen if the family’s total earnings are below $400,000.