Online Calculator | Find Out If You Are Eligible For The Investment Tax Credit & Working Tax Credit

Find Out If You Are Eligible For The Investment Tax Credit & Working Tax Credit

There are several tax credits that people may be eligible for when they do their income tax return, or when a business does their taxes at the end of the year. Two of these that are fairly new and are given to those who are making contributions towards society and who pay into the federal government throughout the year through their paychecks or business practices.  They are the investment tax credit and the working tax credit.

The investment tax credit (ITC) creates a reduction in an individual’s or business’ tax liability when they have made investments towards solar energy generation technology in the previous year. The tax policies for renewable energy create high-wage American jobs, causing an economic upturn and cutting back damage to the environment. These tax policies also lower energy bills for businesses and consumers.   This incentive to invest in the solar energy industry ensures the construction of projects, manufacturing, and the ultimate growth of the solar industry throughout the United States. This tax credit is currently only in effect until December 31, 2016. Even though the ITC did not truly gain popularity until fairly recently, the Energy Policy Act of 2005 implemented another in 2006. The investment tax credit is a 30% uncapped tax credit for commercial and residential solar systems. A 2008 act created an eight-year extension after there was an economic downturn. The ITC helped to bring about significant growth between 2006 and 2007 for the solar industry in the United States.

The working tax credit, or Making Work Pay credit, is for those who work yet meet the guidelines under a certain amount. It is likely that people will receive the $400 credit if they have a low to moderate work income. They will get this whether or not they are even going to be receiving a refund. You can either use a tax program yourself which walks you through each step to let you know what credits and deductions you are eligible for, or you can go to a qualified tax preparer or tax attorney who will help you to receive the highest refund or owe the least possible. The federal government has executed the Earned Income Credit, working tax credit, and various others to aid the working class in keeping more of their money in their pockets rather than having to give to the government or receive very little.

Through the investment tax credit and working tax credit, many people and businesses have benefitted from the actions that they have taken in the previous year. Every little bit counts in the struggling economy, so you should do your research either online, on a tax preparation program, or by speaking to a professional. Doing your tax return does not have to be a stressful experience, even though most people dread this time of year as they expect to get charged by the IRS or not get much of the taxes back that they put in.

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