My 2015 1040 is Still on Extension – Educate Me Baby!

Good news for all of you Stragglers and Procrastinators. There’s still time to claim various tax credits and lower your 2015 tax burden. In fact, some of these incredible tax credits are even refundable, which means the IRS may be writing you a big fat check (for a change). The Granddaddy of them all is the Earned Income Tax Credit commonly called “welfare traveling incognito”. From coast to cost, this refundable tax credit is the fan-favorite of hardworking Americans, low rent chumps, illegal immigrants and minor league tax cheats alike. Qualifying criminals et al, regularly receive over $6,000 from the Federal Government a/k/a the American Taxpayer. And according to the Obama Administration, the program is a huge success (not withstanding prodigious amounts of fraud and identity theft).

Second place is the American Opportunity Tax Credit which offsets qualified education expenses, provided you’re pursuing higher education, and the program you’re taking leads to a degree or other recognized education credential (whatever that means). This little gem allows taxpayers to write off up to $2,500.

Next on the Hit Parade comes the Child and Dependent Care Credit. Let’s say you paid someone to care for your child (who is under 13) so you could go to school or work, . . . well Sunshine, depending on your particular facts and circumstances, you may be entitled to write off another $2,100

Cash in on the Child Tax Credit. Single, married or swingle players may claim up to $1,000 per child. Nota bene, the IRS insists that the child be under 17, etcetera, etc. FYI 26 U.S. Code § 152 allows illegal immigrants and others to claim dependents in Mexico.

The next steaming pile of savings is called the Savers Credit which in theory allows low earners, who contribute into a qualified retirement plan, to claim a $2000 credit for their trouble. Editor’s Note: unfortunately this well intended, needlessly complicated idea, just doesn’t work. 

For more information about Exemptions Deductions and Dependents, see: IRS Publication 501.  Publication 970 (2015), Tax Benefits for Education. IRS Savers Credit.