Understanding tax credits can lead to significant savings on your tax bill. In 2024, several credits are available for individuals and businesses. Let’s break it down in simple terms.

For Individuals:

1. Child Tax Credit

• The Child Tax Credit has been updated. If you have qualifying children, you may be eligible for a credit that can directly reduce your tax liability.

2. Earned Income Tax Credit (EITC)

• The EITC is designed to help low to moderate-income workers. The amount you receive depends on your income and the number of qualifying children you have.

3. Education Credits

• If you’re pursuing higher education, there are credits like the American Opportunity Credit and the Lifetime Learning Credit. These can help offset education expenses.

4. Health Coverage Tax Credit (HCTC)

• For individuals eligible for Trade Adjustment Assistance, the HCTC helps cover the cost of qualified health insurance.

For Businesses:

1. Small Business Health Care Tax Credit

• Small businesses offering health insurance to employees may qualify for this credit. It’s designed to help with the cost of providing health coverage.

2. Work Opportunity Tax Credit (WOTC)

• WOTC provides incentives to employers who hire individuals from certain targeted groups, such as veterans or those receiving government assistance.

3. Research and Development (R&D) Credit

• Businesses investing in research and development activities may be eligible for a tax credit. This encourages innovation and technological advancement.

4. Energy Efficiency Credits

• Businesses making energy-efficient improvements to their properties may qualify for tax credits. This includes improvements like installing solar panels or energy-efficient HVAC systems.

Tips for Everyone:

·         Stay Informed: Tax laws can change, so stay updated on the latest information.

·         Keep Records: Maintain thorough records of your qualifying expenses or activities to claim credits accurately.

·         Consult a Professional: If in doubt, seek advice from a tax professional. They can provide personalized guidance based on your specific situation.

Remember, tax credits directly reduce the amount of tax you owe, so take advantage of these opportunities to maximize your savings in 2024.

Happy filing!

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Dan W. Nowell Wealth Management and not necessarily those of Raymond James. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.