As I celebrate my 20th year as an income tax and financial advisor, I am sure I will continue to be asked the number one question: “Can I get free money from the IRS?”

The answer: YES YOU CAN!

But you must qualify and understand the laws.

To understand the laws, you must know about tax deductions and tax credits.

A tax deduction reduces your taxable income by a percent of every dollar, while a tax credit offers dollar-for-dollar reduction of the tax you owe.

For example, if you’re in the 25 percent tax bracket, as most lower middle class New Yorkers are, a $100 deduction means you’ll pay $25 less in taxes, while a $100 credit means you’ll pay $100 less.

The tax code has many more deductions than credits, though the latter gives you all your money back.

Part of proper tax planning is to understand how your lifestyle fits into the IRS code of deductions and credits, especially credits.

Have kids? You’re entitled to two types of credits:

1. Child Care and Dependent Care Credits
You may be able to claim the child and dependent care credit if you paid work-related expenses for the care of a qualifying individual. The credit is generally a percentage of the amount of work-related expenses you paid to a care provider for the care of a qualifying individual. The percentage depends on your adjusted gross income (AGI). Work-related expenses qualifying for the credit are those paid for the care of a qualifying individual so you can work or actively look for work.

The expenses qualifying for the credit must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from gross income. The total expenses qualifying for the credit are capped at $3,000 (for one qualifying individual) or at $6,000 (for two or more qualifying individuals).

The credit works on a sliding scale system. The average credit is $700 per person, if you have an AGI of $35,000. The credit will be higher if the income goes down and vice versa.

2. Child Tax Credit
The Child Tax Credit is $1,000 for each “qualifying child” under the age of 17. The credit is subject to income limitations and may be reduced or eliminated depending on your filing status and income. A qualifying child is an individual for whom the taxpayer can claim a dependency exemption and who is a son, daughter, stepson or stepdaughter (or descendant of either), a brother, sister, stepbrother, or stepsister (or descendant of either) for whom the taxpayer cares as the taxpayer’s own child, or an eligible foster child of the taxpayer.

The full credit is available to single parents with modified adjusted gross income (AGI) of $75,000 or less or to couples filing jointly with AGIs of $110,000 or less ($55,000 for married individuals who file separately).

The best thing about these credits is you did not have to work full time to be eligible, but you do have to file taxes to apply.

Spend time to see a tax advisor before tax season goes into full swing to learn how your lifestyle could get you some free money back from the government.

Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm that specializes in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, BronxNet, Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, 1010 WINS, The Bronx News and The Bronx Chronicle. Mr. Rivieccio can be reached at (347) 575-5045.