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Income Tax Credits
Credits reduce your federal income tax after your tax has already been calculated. Accordingly, tax credits can be a powerful strategies for reducing your US federal income tax. Some credits are non-refundable, and can at most reduce your federal income tax to zero. Other credits are refundable, and these can reduce surtaxes and possibly generate a refund than the amount you actually paid in.
Withholding and Estimated Tax Payments under Community Property Laws
Married persons filing separate federal tax returns will need to determine how much each spouse will claim for withholding and estimated tax payments. The rules for allocating withholding and estimated tax under the community property rules is fairly straightforward.
Adoption Tax Credit: How to Claim the Adoption Credit
You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption.
American Opportunity Tax Credit
The American Opportunity Tax Credit provides up to $2,500 for people pursuing undergraduate education. Replacing and expanding on former the Hope credit, the American Opportunity credit is scheduled to be effective for the years 2009 and 2010 only.
Child Care Tax Credit & Dependent Care Expenses
The Child Care Tax Credit reduces your taxes by providing a credit for money you spend on day care and child care services. Find out how to qualify for the Child Care Tax Credit and how to fill out Form 2441.
Child Tax Credit - Up to $1,000 in Federal Tax Credits for Children
If you have children, you qualify for the Child Tax Credit. Find out how to fill out the child tax credit worksheet and if you need to file IRS Form 8901.
Credit for the Elderly or Disabled
If you are age 65 or older, or if you are disabled, you can reduce your taxes with the tax credit for the elderly or the disabled. How to fill out Schedule R and 1040 line 48.
Earned Income Credit: Qualfying for the Earned Income Tax Credit
How to qualify for and figure your earned income credit. The EITC is a tax credit that lowers your taxes and gives you a bigger refund. Find out the criteria for qualifying children, and the special Head of Household rule if you are separated from your spouse.
Energy Tax Credits
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment. More information about the Residential Energy Credits.
First-Time Homebuyer Tax Credit
There's a new, refundable tax credit of up to $7,500 for the purchasing a primary residence. The credit is available to first-time homebuyers who purchase a primary residence after April 9, 2008, and before July 1, 2009.
Foreign Tax Credit - Take a Credit in the US for Taxes Paid to Other Countries
Claiming the foreign tax credit reduces your US taxes by the amount of tax you have paid to foreign governments. An excellent tax strategy for investors and people working abroad.
Hybrid Car Tax Credit – Essential Information about the Alternative Motor Vehicle Credit
Qualifying vehicles purchased on or after January 1, 2006, will be eligible for a tax credit ranging from $400 to $3,400 based on fuel economy. The hybrid car tax credit is actually a combination of two separate tax credits. The math is complicated, and fortunately you won't have to calculate it. The car manufacturers and the IRS will certify the tax credit amount of qualifying vehicles.
Making Work Pay Tax Credit
The Making Work Pay tax credit is a new, temporary tax credit worth up to $400 for the years 2009 and 2010 only.
Other Tax Credits - Form 1040
How to fill out Form 1040 Lines 54 and 55 to claim other tax credits.
Retirement Savings Contribution Credit
If you contribute to a retirement plan, you may qualify for the Retirement Savings Tax Credit. How to fill out IRS Form 8880.
Retirement Savings Credit - Tax Credit for Contributing to a Retirement Plan
If you contribute to a retirement plan, you may qualify for the Retirement Savings Tax Credit. Tips for Form 8880.
Tax Credits
Claiming tax credits is an important step in reducing your taxes. Find out about the tax credits you may qualify for.
Lifetime Learning Tax Credit
The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of 20% of tuition expenses, with a maximum of $2,000 in tax credits on the first $10,000 of tuition.