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

2163 views
  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 Should I take a credit or an adjustment for my tuition and fees?

2020 views
  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 is a qualifying dependent relationship for EIC?

1859 views
  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 Who is eligible to claim the Retirement Savings Contribution Credit?

2120 views
  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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Orange arrow Am I Able to Claim the Credit for Elderly or Disabled?

2906 views
  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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Orange arrow Who must file Form 8862?

1729 views
  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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Orange arrow Who can take the Residential Energy Credit?

2590 views
  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 What are qualifying expenses for Education Credits?

2507 views
  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 How do I calculate my Education Credit?

2537 views
  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?

1958 views
  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?

1740 views
  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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Orange arrow Can I claim the Retirement Savings Contribution Credit?

1790 views
  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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Orange arrow What is the Additional Child Tax Credit?

2278 views
  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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Orange arrow First-Time Home Buyer Credit

2163 views
  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 Lifetime Learning Credit?

1269 views
  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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