Ash ExantusChief Financial Educator, Ash Cash Enterprises · Financial Empowerment Leader | Public Affairs Strategist | Media Executive | Advocate for Economic Equity & Financial Literacy | Champion for Formerly Incarcerated Communities

Ash Cash featured on NY1 discussing how to Maximize Your Tax Refund by Exploring Credits

28 Jan 2017 · 2 min

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In a Money Matters segment on NY1, host Tara Lynn Wagner interviews financial empowerment coach Ash Exantus and CPA John Lieberman about how taxpayers can boost their refunds by focusing on tax credits rather than deductions. The discussion outlines the dollar‑for‑dollar impact of credits and walks through the most common ones: the Child Tax Credit (up to $1,000 per child), the Child and Dependent Care Credit (requiring documented expenses and provider EIN/SSN), the two education credits—the American Opportunity Tax Credit and the Lifetime Learning Credit (mutually exclusive per student), the Saver’s Credit (a match of 10‑50% of retirement contributions up to a $4,000 credit for married filing jointly), and the Earned Income Tax Credit (EITC), which many eligible workers miss, especially the self‑employed. The experts stress the importance of proper documentation, income‑based eligibility thresholds, and the three‑year record‑keeping rule for preparers. They also recommend using a tax professional’s checklist and direct viewers to IRS.gov for detailed guidance.

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I'm Tara Lynn Wagner. If you're looking to beef up your tax refund, financial empowerment coach Ash Exantus says take advantage of every credit you're entitled to because that's money in your pocket.
That you're able to save with, able to budget with, able to, to, you know, maximize your refund totally.
Deductions can also help lower your tax burden, but CPA John Lieberman says they just don't pack the same financial punch.
Credits are dollar-for-dollar reduction in taxes. Credits are the best thing.
Some are pretty straightforward, like the Child Tax Credit that could be worth up to $1,000 per child. Need someone to watch those kids while you work or look for work? You may qualify for the Child and Dependent Care Credit if the child and the provider meet certain criteria.
You must have what is called documentable expenses, so it's very important to make sure that you have EIN numbers for the provider or Social Security number.
There are 2 major education credits. The American Opportunity Tax Credit and the Lifetime Learning Credit. You can choose the one that benefits your household the most, but you can't claim both for the same student. And then there's a credit that rewards you for saving for the future.
The saver's credit is really based on saving for retirement, so it is towards your 401, towards your IRA.
This credit works kind of like a company match on your 401. You put money aside.
The government has said we will basically match it. It's either 50%, 20%, or 10%, depending on your income level.
With a maximum credit of $4,000 for a married couple filing jointly. Finally, the most frequently overlooked credit is also one of the biggest. According to the IRS, 1 out of every 5 eligible workers fails to claim the Earned Income Tax Credit.
It sounds kind of complicated. People that are self-employed forget about asking for it.
Which may be a good case for using a pro. They have a detailed checklist to determine if a taxpayer is eligible for the EITC.
And the preparer actually has to keep your records for 3 years that they've asked you all the right questions about it.
Most credits have specific income and eligibility requirements. For more information, visit irs.gov. For Money Matters, Tara Lynn Wagner, New York 1.