What Are Tax Credits?
Unlike deductions which reduce your taxable income, credits reduce the tax itself. There are non-refundable credits, credits that can reduce your tax to zero but if there is any credit left, you do not receive it as part of your refund. Refundable credits, on the other hand, can reduce your tax to zero and any amount left over is added to your refund. Mraz Tax Solutions can determine which credits you qualify for and ensure you maintain the proper supporting documentation.
ChildTax Credits
This credit is for qualifying child dependents, it is intended to assist with the cost of raising children. While this credit offers a significant deduction it is subject to income limitations.
Child and Dependent Care Credit
Parents who are working or seeking employment may be eligible for a credit to offset their childcare costs. This credit applies to children under the age of 13 and covers a percentage of qualifying expenses.
Adoption Credit
Adoption agency fees, legal fees, and traveling expenses can be of significant cost. The adoption credit helps to alleviate some of this financial burden.
Education Credits
There are currently two education credits available to those seeking a higher education. The American Opportunity Tax Credit (AOTC) offers a greater credit and is available to qualifying students for the first four years of college. The Lifetime Learning Credit (LLC) is available to qualifying students for any level of post-secondary education.
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit is a credit for lower income households. This credit can significantly reduce your tax and even increase your refund amount. The amount of the credit and eligibility depends on filing status, number of dependents, and income level.
Energy Credits
Mraz Tax Solutions will determine which of your energy efficiency upgrades qualify for energy credits. The Residential Renewable Energy Credit applies to solar, geothermal and wind installations. The Non-Business Energy Property Credit is for home improvements like electric heat pumps, central air conditioners and exterior windows.
Electric Vehicle Credit
New plug-in electric (EV) or fuel cell vehicles (FCV) purchased in 2023 could qualify for a Clean Vehicle Tax Credit worth up to $7,500. At Mraz Tax Solutions we can determine if your car qualifies for the credit and how much of the credit you are entitled to.
Foreign Tax Credit
Taxpayers who live abroad and pay taxes on foreign income to a foreign government may be able to claim the foreign tax credit. This credit allows you to credit the foreign tax you paid against your U.S. tax, thereby preventing double taxation.
Retirement Savings Contribution Credit
The Saver's Credit is intended to encourage taxpayers with low to moderate income to contribute to their retirement account. The amount you may qualify for depends on your income and contribution amount.
Do you offer free initial consultations?
Yes! We are here to help with all your tax questions, and we offer free initial consultation by email, phone or in person. Our tax office is located in Orange County, California. If you have any questions, feel free to contact us.
Are you licensed by the IRS?
Yes. We are Enrolled Agents, licensed by the IRS with unlimited practice rights. Enrolled Agents usually help with your tax planning, prepare, sign, and file your tax returns, offer tax advice, and may represent you before the IRS.
Can you prepare a tax return for my small business?
Yes. We help businesses meet all their tax needs year-round. Whether you are self-employed or own a business with multiple employees, Mraz Tax Solutions can handle your business tax return preparation and planning.
Can my tax return preparer review my self-prepared returns?
Yes. We review Federal and State returns self-prepared or by others. We will advise you of missed deductions or audit risks, as well as prepare corrected or amended returns.
Why file your taxes with Mraz Tax Solutions?
We specialize in individual and small business tax returns. Whether you're an employee filing a W-2, a contractor taking part in the sharing economy filing a 1099 or a small business owner, we are here to help. We understand the importance of minimizing your tax and getting you the maximum refund you are legally entitled to. In order to do this and to prepare a complete and accurate return we take the time to get to know you and your goals.
