BEACHWOOD, Ohio - The Internal Revenue Service officially opened tax season Friday, and NewsChannel 5 is on your side with five money-saving tax tips with help from H&R Block:
- Education tax credit: College students or a parents of college students are entitled to a tax credit of up to $2,500 for tuition and books. The credit applies to student loan money paid for school, too. “If you’re in your first four years of undergrad, some of it can be refundable,” said Christine Fuller, tax adviser for H&R Block in Beachwood.
- Educator Expense Adjustment: Teachers can write off up to $250 worth of school supplies that they pay for. The credit is expiring, though. “Take advantage of it this year while you can still do it,” added Fuller.
- Home Improvement Tax Credit: Home owners may receive a tax credit of $500 for installing energy-efficient windows, doors and appliances. The credit is expiring this year and is only available for a one-time use. Appliances include a “new hot water heater that meets the new energy requirements or furnace that meets the new energy requirements, insulation,” added Fuller.
- Earned Income Tax Credit: The credit is for lower-income workers and is dependent on the filing status of the person on the tax return, the number of children and the income level. “Earned income credit can be up to $6,000,” said Fuller.
- Small Business Income Deduction: Small business owners in Ohio can deduct up to 50 percent of profits if those profits are less than $250,000.
Taxes are due April 15, 2014.