**Why You Should File Your Taxes and How You Can Get All Your Money Back** Choose SCS Tax Service to help you

Here’s an updated version that reflects the latest IRS tax laws for 2023 and 2024:

Filing taxes might seem overwhelming, but it’s an essential task that can bring significant financial benefits, including the possibility of getting all your money back. Staying informed about the latest tax laws for 2023 and 2024 is key to maximizing your refund. Here’s how you can take advantage of current tax laws to ensure you get the most out of your tax return:

1. Claiming Tax Credits

Tax credits directly reduce the amount of tax you owe, and some are even refundable, meaning you can get a refund even if you don’t owe any taxes. Here are the major tax credits available under the 2023 and 2024 IRS tax laws:

- Earned Income Tax Credit (EITC): This credit is available to low-to-moderate income workers. For 2023 and 2024, the maximum credit is up to $7,430 for families with three or more qualifying children. The IRS has also increased income thresholds, making more people eligible for this credit.

- Child Tax Credit (CTC): In 2023 and 2024, the Child Tax Credit offers up to $2,000 per qualifying child under age 17, with $1,600 of that amount being refundable. The IRS phased out the expanded credit introduced during the pandemic, but this credit remains a substantial benefit for families.

- American Opportunity Tax Credit (AOTC): For those paying for higher education, the AOTC provides a credit of up to $2,500 per eligible student, with up to $1,000 of that amount refundable. This credit covers tuition, required fees, and course materials for the first four years of higher education.

2. Claiming Deductions

Deductions lower your taxable income, which can increase your refund. The IRS has made adjustments to standard and itemized deductions for the 2023 and 2024 tax years:

- Standard Deduction: The IRS increased the standard deduction for 2023 and 2024 to account for inflation. For 2024, the standard deduction amounts are:

- $13,850 for single filers

- $27,700 for married couples filing jointly

- $20,800 for heads of household

- Itemized Deductions: If your eligible expenses exceed the standard deduction, you can itemize deductions, including mortgage interest, state and local taxes (up to $10,000), medical expenses (exceeding 7.5% of adjusted gross income), and charitable contributions.

3. Filing to Get a Refund of Withheld Income

If you’ve had federal income tax withheld from your paycheck, filing a return is the only way to get that money back. The IRS reports that millions of taxpayers receive refunds each year because they overpaid their taxes through withholding.

4. Avoiding Penalties and Interest

Filing your taxes on time is crucial to avoid penalties and interest. Even if you believe you don’t owe any taxes or are due a refund, late filing can result in penalties of up to 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.

5. Staying Informed with IRS Resources

The IRS offers updated resources to help you navigate the 2023 and 2024 tax laws. The IRS Withholding Estimator is a helpful tool for determining whether you’ve had the right amount withheld from your paycheck. Additionally, the IRS’s Taxpayer Advocate Service is available to assist if you encounter issues.

For more information on tax credits, deductions, and filing requirements, visit the IRS website, where you can find tools, publications, and up-to-date guidance on filing your taxes.

This updated post reflects the latest tax laws and provides parents with accurate and current information for the 2023 and 2024 tax years.