Even though the child tax credit has been highly publicized, many taxpayers are not aware of it, do not realize they qualify or just can't figure out all the paperwork. In fact, the IRS has received many returns that did not claim the credit to which the taxpayer was entitled. The agency has been notifying taxpayers about the error and encouraging them to take the credit, which could substantially affect the refund or tax due in the taxpayer's favor. Several educational tax credits are now available. The Hope credit lets people below certain income levels claim a credit for the first two years of postsecondary education.
Taxpayers also can tap into their other IRAs to pay for qualified higher education expenses.
But making heads or tails out of the specifics and qualifications can be a daunting task, one many taxpayers don't feel qualified to take on themselves. Enter the professional accountant. Groeteke said keeping up with changes in the tax code is a full-time job, and the average taxpayer does not have the information, resources or inclination to stay abreast of those changes. Molacek said he has not seen a high level of confusion among his clients this year. But they are asking a lot of questions.