What Is The Saver’s Credit?

 Save for your retirement

The Saver’s Credit also known as the retirement savings contributions credit, this is the tax credit which helps both low and moderate income workers to save for their retirement.

Like other tax credits, the Saver’s Credit can either increase a taxpayer’s refund or reduce the balance due.

What Is The Premium Tax Credit?

 Premium Tax Credit

The Premium Tax Credit is a refundable tax credit that helps eligible taxpayers with moderate incomes to be able to afford health insurance purchased through the Health Insurance Marketplace. To be eligible for the credit, you need to satisfy five rules. 

1. You need to get your health insurance coverage through the Health Insurance Marketplace.

What Is Child and Dependent Care Credit?

Child Care Credit

If you pay for childcare or day camps in the summer while you work, your expenses may qualify for a Child and Dependent Care Credit that can lower your taxes. Here are 10 facts that you should know about this credit:

What Is A SEP-IRA?

 Simplified Employee Pension Plan

A SEP-IRA is a Simplified Employee Pension plan. This plan provides a significant source of income at retirement by allowing employers to set aside money in retirement accounts both for themselves and also for their employees.  A business of any size, even self-employed, can establish a SEP-IRA.

What is a compensation?

 Your Earned Income

Generally speaking, a compensation is what you earn from working. In other words, it is your earned income. It can include all of the items discussed below.

• Wages, salaries, etc.   Wages, salaries, tips, professional fees, bonuses, and other amounts you

What is IRA?

 Traditional or Roth IRA?

IRAs means Individual Retirement Arrangements. There are four types of IRA-based retirement plans:  The two most popular ones are Traditional IRA and Roth IRA.

A traditional IRA is a personal savings plan that gives you tax advantages of saving for your retirement. 

What is Earned Income Tax Credit?

Earned income from employment

Earned Income Tax Credit, sometimes called EITC that is a tax credit to help you keep more of what you earned. To qualify, you must first meet certain basic requirements and then you must file a tax return to claim the credit.