tax
credits

Earned Income Tax Credit

This is a refundable credit for low-income working individuals and families. Your income or AGI and family size determine the amount of the EITC. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Child Tax Credit

This credit is for people who have a qualifying child. The maximum amount of the credit is $1,000 for each qualifying child. This credit can be claimed in addition to the credit for child and dependent care expenses.

Child and Dependent Care Credit

This credit is a nonrefundable credit for expenses paid for the child care of children under age 13, or for a disabled spouse or dependent, to enable the taxpayer to work. The credit is a percentage, 20% to 35% of those qualifying expenses.

Adoption Credit

Adoptive parents can take a tax credit of up to $13,400 for qualifying expenses paid to adopt an eligible child. Credit is subject to a certain phrase out amount.

Credit for the Elderly and Disabled

This nonrefundable credit is available to individuals who are either age 65 or older or are under age 65 and retired on permanent and total disability, and who are citizens or residents. However, there are income limitations.

Education Credits

There are two credits available for qualified higher education, the American Opportunity Credit and the Lifetime Learning Credit. The American Opportunity Credit is for the payment of the first four years of tuition and related expenses for an eligible student for whom the taxpayer claims an exemption on the tax return. The Lifetime Learning Credit is available for all post-secondary education for an unlimited number of years. A taxpayer cannot claim both credits for the same student in one year.

Retirement Savings Contribution Credit

Eligible individuals may be able to claim a credit for a percentage of their qualified retirement savings contributions, such as contributions to a Roth IRA or Traditional IRA or salary reduction contributions to a 401K plan. To be eligible, you must be at least age 18 at the end of the year and not a full-time student or an individual for whom someone else claims a personal exemption. Also, your adjusted gross income must be below a certain amount.

Alternative Motor Vehicle Credit

Alternative Motor Vehicle Credit is a non refundable credit for qualified fuel cell motor vehicle. The credit limit depends on model.

Foreign Tax Credit

Income taxes paid to a foreign county or U.S. possession on income that is also subject to U.S. federal income tax. The credit is the amount of foreign tax up to U.S. tax multiplied by ratio of foreign/total taxable income.