Back dating tax credits
Ultimately, if you wish to avoid overpayments and underpayments of tax credits, it is in your interest to report significant changes in circumstances or income as they happen.
You should take similar steps if you or your partner have health problems and get DLA or Personal Independence Payment in your own right.However if you wait until the end of the tax year you may have an overpayment which is likely to be recovered.In effect the system sets and pays you a provisional tax credit during the year and then the amount they should have paid you and the amount you were actually paid are reconciled at the end of the year.As well as renewing your tax credit award annually you may also need to tell HM Revenue & Customs about changes during the year.This page explains how changes of circumstance affect the amount of tax credit you get.If you qualify for the Lifetime Learning Credit, you can claim it any number of years (but there is a tighter income restriction).
When you prepare your return on efile.com, we will help you to know which education credit or deduction you qualify for, and which one will be the most beneficial to you. Read about common student tax myths and helpful student and beginner tax tips.
Starting to get Disability Living Allowance (DLA) for the first time or getting an increase in DLA There are some exceptions to the one month limit on backdating.
If your child is awarded DLA or has an existing award increased to the high rate for personal care, this may lead to extra tax credits.
Of the two education credits currently available, the American Opportunity Credit is the most valuable.
The American Opportunity Credit is an expanded version of the Hope Credit.
Where a tax credit claim has been made by a couple who were not together in the previous tax year, the household income will be the sum of the income of each adult in that tax year.