7. Not taking advantage of tax credits
In general, tax credits are better than most tax deductions, mainly because they directly minimize your income tax liability. So why aren’t you taking advantage of them? Well, maybe you don’t know about such credits… If that’s the case, we will reveal some.
For example, low-income workers could benefit from the Earned Income Tax Credit. Other tax credits include the Child Tax Credit worth up to $2,000 per qualifying dependent/child and the Retirement Savings Contribution Credit for qualifying contributions.
Using the IRS Free File will help you determine whether you can get a tax credit or not that could potentially reduce your tax liability.
