Tax credits reduce the amount of income tax you owe to the federal and state governments. Credits are generally designed to encourage or reward certain types of behavior that are considered beneficial to the economy, the environment or to further any other purpose the government deems important. In most cases, credits cover expenses you pay during the year and have requirements you must satisfy before you can claim them.
Three tax credits that are specifically geared towards working adults who are earning low to moderate salaries are the Earned Income Tax Credit, Wisconsin Homestead Credit, and the Child Tax Credit. Please learn more about these credits to see if you are eligible for the money you deserve!
Earned Income Tax Credit
EITC, Earned Income Tax Credit, is a benefit for working people who have low to moderate income. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund. Earned Income Credit means extra cash for working families! You may qualify for credits from the U.S. Government and the State of Wisconsin that could bring you more than $8,000!
Wisconsin Homestead Credit
The Homestead Credit is a tax benefit for renters and homeowners with low or moderate incomes. It is designed to lessen the impact of rent and property taxes. Qualifying persons can get back some or all of their state taxes withheld during the year. Those who do not have earnings, or whose earnings were too small to have taxes withheld, can get extra cash back from the State.
Child Tax Credit
The Child Tax Credit helps working families offset the cost of raising children. It is worth up to $1,000 per eligible child (under age 17 at the end of the tax year). If the Child Tax Credit exceeds taxes owed, families may receive some or all of the credit as a refund, known as the additional child tax credit (ACTC) or refundable CTC.