Income-Tax Savings You May Be Missing

Are you paying more tax then you need to? When it comes to filing taxes, getting the best returns is not about skill—it’s about what you know. Here are some tax strategies you may have overlooked.

1. Earned Income Tax Credit (EITC). Millions of lower-income people miss out on this every year. According to the IRS, 25 percent of taxpayers who are eligible for the EITC fail to claim it. The EITC is a credit-not a deduction, ranging from $519 to $6,431. The credit is designed to supplement wages for low-to-moderate income workers. Many wage earners previously classified as middle-class; who have lost jobs, took a pay cut, or worked fewer hours, may now be eligible for this credit based on lower income. Additionally, NYS and NYC will provide this tax benefit, as well.