How to Get a Tax Credit

Taxes are due by April 15th.

As a taxpayer, you qualify for a number of tax credits. Obtaining your tax credits is as easy as filing a tax return. In most cases, you can only claim tax credits for the current filing year. It is not necessary to hire an accountant to claim tax credits. However, an accountant may help you uncover hidden or little-known deductions for which you may qualify.

Instructions

1. Research tax credits. The Internal Revenue Service allows deductions for a range of topics, including medical and dental expenses, charitable contributions and education expenses. For a complete list of tax credit by topic, visit the IRS website. (See Resources)

2. File your federal taxes. In most cases, an individual can claim deductions using IRS Form 1040, Schedule A. File your tax return using eFile -- a free electronic filing system provided by the IRS -- or filing software, such as Turbo Tax or Taxwise.

3. Submit receipts or invoices as directed. It may only be necessary to submit receipts or invoices if your tax credit exceeds the maximum threshold, or you are claiming a larger deduction, such as the new home buyer credit.

4. Visit your state's Franchise Tax Board's website to learn which tax credits are available in your state. Claim your deductions on your state tax return.

Tips & Warnings

• A tax credit is a sum deducted from a taxpayer's tax obligation to the federal or state government.

• Send copies of your receipts and invoices, not originals.

• Sign an electronic tax form using an e-signature.

• This article is intended for information purposes only and is not to be taken as a substitute for legal advice. For tax matters that you do not understand, consult a tax attorney or CPA.

References

• Kiplinger: The Gift Tax
• "MSN"; "10 Big Deductions Too Many People Miss"; Jeff Schnepper
• IRS: Tax Topics
• California Franchise Tax Board: 2010 Tax Credit for New Home/First-Time Buyer

Resources

• IRS: Form 1040
• 2010 Instructions for Schedule A