Frequently Asked Questions

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The deductions and tax credits you may qualify for depend on your income, filing status, dependents, expenses, and other factors. Because every tax situation is different, we review your return to identify the tax benefits available to you.

Some common tax credits and deductions may include:

• Child Tax Credit (CTC)
  For tax year 2025, eligible taxpayers may receive a Child Tax Credit of up to $2,200 per qualifying child under age 17. Up to $1,700 per qualifying child may be refundable through the Additional Child Tax Credit, depending on eligibility. The full credit is generally available to qualifying taxpayers with income of up to $200,000, or $400,000 for married couples filing jointly, before the credit begins to phase out.
• Child and Dependent Care Credit
  If you paid for child or dependent care so you could work or look for work, you may qualify for the Child and Dependent Care Credit. Generally, up to $3,000 of qualifying expenses for one qualifying individual or $6,000 for two or more qualifying individuals may be used to calculate the credit. Your actual credit depends on your adjusted gross income and other eligibility requirements.
• Earned Income Tax Credit (EITC)
  Low- to moderate-income workers may qualify for the Earned Income Tax Credit. Eligibility and the amount of the credit depend on factors such as income, filing status, and the number of qualifying children.
• Education Credits
  Taxpayers who paid qualified higher-education expenses may qualify for credits such as the American Opportunity Tax Credit, which can provide a credit of up to $2,500 per eligible student, with up to $1,000 potentially refundable.
• Other Deductions and Credits
  Depending on your circumstances, you may also qualify for deductions or credits related to retirement contributions, adoption expenses, health insurance premiums, business or self-employment expenses, charitable contributions, medical expenses, and other qualifying costs.
• Recent tax-law changes also created additional deductions for certain qualified tips, qualified overtime compensation, qualifying vehicle-loan interest, and eligible taxpayers age 65 or older.

Tax laws and eligibility requirements change, so we evaluate each return individually to help ensure you claim the deductions and credits you are legally entitled to receive.

This information is provided for general educational purposes and does not guarantee eligibility for any particular deduction, credit, or refund.

 In a three-generation household, only one tax filer can claim the EITC and CTC, even if more than one family member works and is otherwise eligible. A working parent living for more than six months of the year with his or her child has priority to claim the tax credits. If the parent did not work or chooses not to claim the EITC or CTC, an eligible grandparent may claim these credits, as long as his or her adjusted gross income is greater than the parent’s. 

As soon as you start to think about your business, an accountant can help you take the next steps. We can discuss your business's organization, tax purposes and operations, along with target pricing and profit margins.  

All information on this site is provided for educational purposes only and does not constitute legal or tax advice. Simply Royal Tax Services is not liable for how you use this information.