Darcy Bergen is an established Peoria, Arizona financial executive who leads the Bergen Financial Group. A Certified Retirement Financial Advisor, Darcy Bergen has extensive experience counseling clients on how to make the tax code work to best advantage.
One aspect of this centers on taking advantage of tax credits, which include the Child Tax Credit, which provides a maximum credit of $2,000 for each offspring who qualifies. In addition, those who pay for care for children or dependents under the age of 13 can claim $3,000 for a single qualifying individual. Under the Child and Dependent Care Credit, this is doubled to $6,000 for two or more children. The American Opportunity Credit offers a $2,500 tax credit related to tuition costs for eligible students attending a four-year higher education program.
Because credits involve a dollar for dollar subtraction from the net tax liability, they have a potentially larger impact than deductions, which are subtracted from the amount of income prior to calculating taxes.