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Category: Credits
42 Articles
Orange arrow How do I claim Tax-Free Educational Assistance and Refunds of Qualified Expenses?

  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...
Orange arrow What are qualified educator expenses?

  Deduction for Educator Expenses New in 2020 tax year: Educator expenses include amounts paid or incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of coronavirus. If you were an eligible educator in the ta...
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Orange arrow What is a qualifying dependent relationship for EIC?

  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 ...
Orange arrow Should I take a credit or an adjustment for my tuition and fees?

  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 ...
Orange arrow What are qualifying expenses for Education Credits?

  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...
Orange arrow Who can take the Residential Energy Credit?

  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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Orange arrow Who is eligible to claim the Retirement Savings Contribution Credit?

  You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions, other than rollover contributions, to a traditional or Roth IRA. Elective deferrals to a 401(k), 403(b) (including designated Roth contributions), governmental 457, SEP, or SIMPLE plan. ...
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Orange arrow Am I Able to Claim the Credit for Elderly or Disabled?

  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 2020, or 2. You were unde...
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Orange arrow How do I calculate my Education Credit?

  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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Orange arrow How do I claim Education Credits?

  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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Orange arrow What is EIC?

  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 income to qualify for this credit and there are limitations. P...
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Orange arrow Can I claim the Retirement Savings Contribution Credit?

  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, SEP, or SIMPLE plan, (c) voluntary employee contributions to a qualifi...
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Orange arrow First-Time Home Buyer Credit

  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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Orange arrow What is the Additional Child Tax Credit?

  Beginning with 2018 tax year returns, the maximum credit increased to $2,000 per qualifying child. Up to $1,400 of the credit can be refundable for each qualifying child as the additional child tax credit. In addition, the income threshold at which the child tax credit begins to phase out is increa...
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Orange arrow What effect does receiving EIC or Additional Child Tax Credit have on welfare benefits?

  Any refund you receive as a result of taking the additional child tax credit or EIC (Earned Income Credit) will not be used to determine if you are eligible for the following programs, or how much you can receive from them. But if the refund you receive is not spent within a period of time, it may ...
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