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How do I claim Tax-Free Educational Assistance and Refunds of Qualified Expenses?
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Tax-free educational assistance includes a tax-free scholarship, Pell Grant, or tax-free employer-provided educational assistance. You must reduce the total of your qualified expenses by any tax-free educational assistance and by any refunds of qualified expenses. If the refund or tax-free assista...
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Should I take a credit or an adjustment for my tuition and fees? |
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Tax credits, deductions and savings plans can help taxpayers with their expenses for higher education. A tax credit reduces the amount of income tax you may have to pay. A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have ...
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What is a qualifying dependent relationship for EIC?
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In general, to be a taxpayer's qualifying child, a person must satisfy four tests: Relationship: the taxpayer's child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these. (Note: There are new rules to determine who is a foster child ...
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Who is eligible to claim the Retirement Savings Contribution Credit? |
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You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions (other than rollover contributions) to a traditional or Roth IRA; (b) elective deferrals to a 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or to the federal Thrift Savings Plan (TSP); (c)...
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Am I Able to Claim the Credit for Elderly or Disabled?
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The credit is based on your filing status, age, and income. If you are married and filing a joint return, it is also based on your spouse's age and income. You may be able to take this credit if either of the following applies. 1. You were age 65 or older at the end of 2021, or 2. You were unde...
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Who must file Form 8862? |
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The IRS requires form 8862 when your EIC for a year after 1996 was reduced or disallowed for any reason other than a math or clerical error. But do not file Form 8862 if either of the following applies: You filed Form 8862 for another year, the EIC was allowed for that year, and your EIC has no...
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Who can take the Residential Energy Credit?
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Use Form 5695 to figure and take your residential energy credits. The residential energy credits are:- The nonbusiness energy property credit (expired Dec 31, 2017) (Part II reserved), and- The residential energy efficient property credit. - Also use Form 5695 to take any residential energy effici...
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What are qualifying expenses for Education Credits? |
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Rules That Apply to Both CreditsWhat Expenses Qualify?Generally, qualified expenses are amounts paid during the tax year for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. It does not matter whether the expenses were paid in cash, by che...
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How do I calculate my Education Credit?
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Who Can Claim an Education Credit You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. For 2020, the credits are based on the amount of adjusted qualified education...
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How do I claim Education Credits? |
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Go to the Credits page of the federal return and scroll to the education credits section to enter the 1098 T received from the educational institution and the following screens. The OLT sofrware will calculate the education credit based on your entries, you will be presented the options to choose ...
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What is EIC?
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EITC (or EIC), Earned Income Tax Credit, is a benefit for working people who have low to moderate income. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund. You must have earned income to qualify for this credit and there are limitati...
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Can I claim the Retirement Savings Contribution Credit? |
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You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions (other than rollover contributions) to a traditional or Roth IRA; (b) elective deferrals to a 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or to the federal Thrift Savings Plan (TSP); (c)...
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What is the Additional Child Tax Credit?
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What’s New Schedule 8812 (Form 1040) for 2021. The Schedule 8812 (Form 1040) and its instructions have been revised to be the single source for figuring and reporting the child tax credits and credit for other dependents. The instructions now include all applicable worksheets for figuring the...
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First-Time Home Buyer Credit |
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First-Time Home Buyer Credit - You can use this form to make a payment on the credit you took. Repayment of the Credit. If you are repaying the credit with your tax return, you are required to file form 5405 only if: You disposed of your home or you ceased using the home as your main home in t...
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What is the Lifetime Learning Credit?
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The lifetime learning credit equals 20% of qualified expenses paid, up to a maximum of $10,000 of qualified expenses per return. Therefore, the maximum lifetime learning credit you can claim on your return for the year is $2,000, regardless of the number of students for whom you are claiming the cr...
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