There are three main tax credits that I'm seeing that people are missing out
on and we're going to go over those whether you're an individual or a
business owner these three you can help you out so the first one is
the dependent care benefit and this is if you have kids so this doesn't
work if you don't have kids but the dependent care benefit is when you
pay someone else to take care of your kids like say when you're working
which which is pretty common for people with young kids.
If you pay someone else you can take a credit on a portion of
what they're paid. So here's what it is for 2023.
You can take up to 25, it's about 25% of whatever.
Whatever you pay up to someone else can come back to you in the
form of a credit. So as an example, if you pay someone,
say $2,000 to watch your kids,
every once in a while throughout the year, at the end of the year
when you're filing your tax return, you can get a $500 credit coming back.
Or say it's $8,000 that you pay Thanks for watching! You can get a
$2,000 credit and it goes up from there.
The maximum credit you can take is up to $3,000 and that's the the
the $3,000 is the credit.
So if you paid it be someone $12,000 you would max out the credit
and you'd get $3,000 credit. Back to you in the form of refund when
you're filing your tax return. So that's the dependent care benefit and that's if
you're working and you have kids. So the other one is the energy.
Efficient home credit. So I know like a lot of you know it's like
when you buy a house there are some tax breaks you can get.
You can write off the mortgage interest. You can write off the like the
mortgage interest in the property taxes. But what else what else can you give
your home to get a tax break. The other thing is is that you
can if you buying Thanks for
watching! Thanks for watching! You can take up to a twelve hundred dollar credit
and that's that's a it's a percentage of the money that you put
in just like that dependent care credit, but it's money up to twelve hundred
dollars you can get back in your pocket and increasing your refund.
So there it is a maximum of a thirty two hundred dollar credit in
a calendar year. Here. The other one is not going to be as common.
It's for the heat pumps and biomass stoves.
Honestly, I don't even know what a biomass stove and boiler is.
Bye-bye. It's for a heat pump and a biomass stove.
You can get up to a two thousand dollar credit. So if you're in
an area where that makes sense and you're doing one of those,
make sure you're claiming that credit. In this last video,
this one is for business owners. Didn't want to leave you out for the
R&D tax credit. The R&D tax credit is the research and development credit.
This can be absolutely massive. So if you think a lot of people think
with the research and development credit, you've got to be a scientist and with
a with a white coat and in a lab like creating.
Thank you. Thank you. Like some new potion type of thing,
but it doesn't need to be that way. You don't need to be scientist.
You need to be creating. Here's like, here's the main test.
And the IRS does have a list of few things, but I'm just going
to keep it simple. You need to be creating something new and it can
be a new product, a new process. Even a new type of service when
you're creating those processes and procedures,
especially if it is a product,
something that you're creating. That's very easy to qualify for.
If it's a new service, you got to make sure it's well documented and
we can separate, you've got to be able to separate your ordinary operating expenses
from your expenses that are actually creating that new thing.
So even if, like, even if you're a chef, if you're creating a new
recipe, if you're creating a new menu,
like, if you're creating something new which is not available in the market right
now. No. That could potentially qualify for the R&D tax credit and the tax
credit this can be usually around between 10 and 20 percent.
. Of the total costs. So say if you spent $100,000 on
creating something new on retooling something or creating a new product.
You spend $100,000, you can get 10 to 20% of that back.
Not only is it a deduction, we can get 10 to 20% of that
back as a credit. Get it. On top of the deduction,
which is pretty amazing. So those are the three things.
Three credits we commonly see and you don't want to miss out on is
the dependent care credit. That's if you're working.
And you have kids then the next one was the energy efficient home credit.
And those are the credits separate from your mortgage interest in your your property
tax. Thanks for watching! And that's just making things you're doing to make your
home more energy efficient. Just keep those receipts submit them when you're getting your
taxes down at the end of the year. And then the last one for
business owners was the R&D tax credit. So those are three things and that
could add thousands of thousands to your refund or reduce the cost.
It could reduce your tax bill by thousands of thousands.
So make sure you track it and that's it for today.