Questions tagged [tax-credit]

for questions that relate to tax credits. A tax credit is a sum deducted from the total amount a taxpayer owes to the state.

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Child Tax Credits are ending. Why would they send me a renewal pack?

Child Tax Credits are ending in 2024 and eligible users are migrating to Universal Credit. The letter ending Child Tax Credit payments for someone not moving to Universal Credit nevertheless states ...
EleventhDoctor's user avatar
0 votes
2 answers
108 views

Is there anything wrong if I request the Earned Income Tax Credit (EITC) if I live abroad with my family?

My tax software seems to allow me to fill out Earned Income Tax Credit (EITC) but I wanted to make sure that I really qualify. For 2023, I have earned income $52,000 and $5500 in a stock sale and $2-...
Mr Monee's user avatar
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0 votes
1 answer
39 views

Does Ontario cap the eligible amount of tax deductible donation to 75% of the net income for 2024?

I googled this for quite a while but I couldn't find anything from official Canadian government sources other than 5.05% on the 1st 200$ and 11.16% on the next ones... where am I supposed to look? I'm ...
qwerty_99's user avatar
  • 159
1 vote
1 answer
261 views

Can I get the "Electric Vehicles Federal Income Tax Credit" for previous year as a non-resident but this year I am a resident of California?

Last year I filed the tax as a non-resident (lived in US/California less than 180 days, but I have a non-immigrant dual intend L1 visa). This year I am filing tax as a resident in California. If I buy ...
Big Tuna's user avatar
2 votes
1 answer
134 views

Can a prior-year deposit be included in a current-year tax credit?

I'm hoping to replace some older windows with energy-efficient ones. The new windows would qualify for the Energy Efficient Home Improvement Credit. The concern I have is timing: the company I'm ...
Jeff Schaller's user avatar
0 votes
1 answer
64 views

Estimated Taxes and Solar Tax Credit [duplicate]

Can I apply the anticipated solar tax credit for my system that was installed in 2023 to my Form 1040-ES estimated tax payments (i.e. lowering them by that amount) without incurring an underpayment ...
Melkkuh's user avatar
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4 votes
2 answers
684 views

Does “sales price” include sales tax for the IRS Used Clean Vehicle Credit?

I am considering purchasing a used electric vehicle (EV) from a dealer, and I am wondering whether it qualifies for the 2023 $4,000 Used EV Credit from the 2022 Inflation Reduction Act. According to ...
yonran's user avatar
  • 175
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1 answer
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Can a non-refundable tax credit be used to negate an early withdraw penalty from Traditional IRA?

I'm considering buying a new electric vehicle which would qualify for the US Federal Clean Vehicle Tax Credit. In theory, I could be eligible for up to a $7500 tax credit. My current paycheck tax ...
Mike B's user avatar
  • 197
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1 answer
30 views

Are Gift Aid payments deductible from the point of view of Child Tax Credit claims?

Can I reduce my declared income on my Child Tax Credit claim by my Gift Aided charitable donations made in the tax year?
EleventhDoctor's user avatar
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1 answer
19 views

How does the reduction in tax relief for mortgage interest on property affect Child Tax Credit claims?

As per Revenue Benefits: Changes to the tax system for landlords of residential properties mean that from 6 April 2017 tax relief for finance costs such as mortgage interest will be restricted to the ...
EleventhDoctor's user avatar
5 votes
1 answer
458 views

When do I include solar credits on my taxes if they are contracted and installed in different years?

In California, USA, in October of 2022 I signed a contract, paid a deposit, and began making payments (10 year term) on solar panels for an investment property The unusually stormy season has delayed ...
Matthew's user avatar
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3 votes
1 answer
762 views

Is there a child credit refund for tax year 2022, or is it just a reduction in tax liability? (IRS 1040)

My tax software didn't show a refund for child credits on my IRS 1040 for tax year 2022 as it did in previous years. I paid foreign taxes and still the balance shows as zero instead of a refund. I ...
Mr Monee's user avatar
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7 votes
2 answers
2k views

Can I use a Mortgage Interest Statement Form 1098 to reduce my taxes?

I have only one house, which I live in. I received a Form 1098 Mortgage Interest Statement for 2022 from my bank. Since I'm early in the mortgage, the interest I pay is quite a large percent of the ...
Village's user avatar
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4 votes
2 answers
140 views

Why does the credit for prior year AMT exist?

The ways in which the US alternative minimum tax (AMT) differs from the regular tax fall into two components: excluded deductions (e.g., state taxes) and disallowed deferrals (e.g., exercising ISOs (...
Benjamin Peterson's user avatar
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1 answer
160 views

Can I somehow convert a tax credit for solar into cash?

A solar company in nyc told me that if I do with them solar I can get %20 on property tax 30% in federal tax and $5000 in tax The 30% tax is non refundable and also $5000 . Is there a way to use to my ...
Eliyahu Shalem's user avatar
1 vote
0 answers
52 views

Tax implications of advance on a future tax refund

Pursuant to M. G. L. c. 62F, there is a limit on the amount of taxes that the state of Massachusetts can collect in a given tax year. Section 2 provides that the taxes collected year over year cannot ...
A. R.'s user avatar
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3 votes
1 answer
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Why would CP11 notice of incorrect Child Tax Credit have an amount that isn't a multiple of $500

I received a CP11 notice saying they changed the amount claimed as nonrefundable Child Tax Credit or credit for other dependents because I either didn't enter an amount or entered an incorrect amount ...
Kevin's user avatar
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1 vote
0 answers
63 views

Received child tax credit refund after owing federal taxes

I filed my taxes (married filing jointly) in early February and owed $2,075 in taxes on AGI of $160,750. I have 2 children (ages 6 and 8) who I claim as dependents. We were issued 6 monthly payments ...
Jason Mansfield's user avatar
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1 answer
100 views

What items can I deduct in my 1040 to increase my child tax credit refund?

The past few years I reported wages, capital gains, rent (about 20k/yr) and since we have 7 children, we haven't paid taxes and got a few thousand dollars child tax refund. The rent brings the total ...
user1422331's user avatar
2 votes
1 answer
758 views

How to resolve free file fillable forms error S8812-F1040-005?

Seems easy enough to ensure my qualified dependents match (are checked on form 1040) to what is inputted into line 4a on schedule 8812. Both match but I keep getting a rejected notice. Issue : ...
user115272's user avatar
1 vote
1 answer
206 views

Amended tax return (child tax credit). Received refund of $1207 instead of $1500

Due to lost SSN mail I was unable to claim full child tax credit on my original 2018 and 2019 tax returns. So I was getting $500 child tax credit instead of $2000. After finally learning the SSN for ...
Ark-kun's user avatar
  • 429
2 votes
2 answers
181 views

If a parent filed taxes in 2020, and then a child was born or adopted in 2021, are can they receive the monthly "Advance Child Tax Credit" payments?

Suppose someone filed a tax return in 2020. Also suppose a child was either born or adopted into the family in 2021. Are they eligible to receive the monthly "Advance Child Tax Credit" ...
user4574's user avatar
  • 215
1 vote
2 answers
118 views

How do non-refundable tax credits combine with fully refundable tax credits

I am considering purchasing a solar system for my house. I didn't do it last year, because I projected my income tax liability to be less than $1k after the child tax credit due to the fact that I ...
Ian's user avatar
  • 223
6 votes
2 answers
766 views

Does overpaying estimated taxes lead to loss of non-refundable tax credit?

Say: My total fed tax liability is 60K. I've made estimated payments of 65K. (keeping withholdings out of picture here for simplicity) I'll expect a tax refund of 5K. I also installed solar panels and ...
Happy Town's user avatar
1 vote
1 answer
182 views

IRS form for Advance Child Tax Credit (CTC) Opt-Out

Aside from the User-Portal on IRS Web Site, what other methods are available to opt-out of the 2021 Advance Child Tax Credit? I'm specifically thinking of an IRS Paper Form akin to all their other ...
zundarz's user avatar
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1 vote
1 answer
202 views

2021 tax credits - How does child tax credit affect other tax credits?

Let's say my tax liability for 2021 will be $8,000 I have 2 eligible dependents resulting in $6,000 in child tax credits I'm eligible for $4,000 in other tax credits that are non-refundable My ...
BobbyScon's user avatar
  • 14k
4 votes
1 answer
156 views

If I defer the 2021 child tax credit can I base it on my 2021 income?

The 2021 child tax credit includes payments that the IRS will send from July to December of 2021. The payment is based on the 2020 filing. However I get the impression that it is really based on the ...
Paul's user avatar
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1 vote
1 answer
696 views

Why don't students get the savers' credit?

I graduated last May. I then got a job. Although I contributed a qualifying amount to a retirement account, according to form 8880 I am not eligible for the saver's credit because I was a student. I'...
Him's user avatar
  • 365
3 votes
4 answers
215 views

Foreign tax credit does not seem to prevent double taxation

The foreign tax credit is intended to relieve you of a double tax burden when your foreign source income is taxed by both the United States and the foreign country. The IRS limits the foreign tax ...
Joris Kinable's user avatar
2 votes
1 answer
160 views

Carry over of North Carolina foreign tax credit

Referencing North Carolina income tax form D-400TC, Part 1 seriously limits the amount of foreign tax credit (FTC) I can take (line 7a is considerably smaller than line 6). I am wondering if it is ...
RustyShackleford's user avatar
2 votes
1 answer
114 views

Any current way to account for changed child tax credit in a W-4?

The recently enacted American Rescue Plan Act (aka third stimulus) changes quite a number of things for the tax code for 2021. Notably for this post, the child tax credit for 2021 is increased to ...
NeutronStar's user avatar
  • 1,322
1 vote
0 answers
63 views

How could I take advantage of under-utilized tax credits?

Inspired by my question and JTP's answer here, there are some cases where a person's tax credits are much more than their tax liability. That person might even pay a "negative tax" and get a ...
Nosjack's user avatar
  • 8,495
15 votes
2 answers
4k views

Does having several kids really mean I don't pay any federal taxes?

My wife and I are foster parents, and long story short we are planning to adopt three kids this year. In anticipation of this I went ahead and considered the kids as dependents for 2021 and updated my ...
Nosjack's user avatar
  • 8,495
2 votes
1 answer
65 views

How do I claim my additional Economic Impact Payment if I married after getting the first?

I received the original EIP last spring, then later on in the year, I got married. Early in 2021, I received the $1,200 for the second EIP, but I want to claim the additional $1,200 now that I have a ...
Bigbio2002's user avatar
  • 1,299
3 votes
0 answers
177 views

Why is the second lowest cost silver plan (SLCSP) premium reported as $0 when no advance premium tax credit (APTC) was taken?

In the instructions for Form 8962 (Premium Tax Credit), it says: If no APTC was paid for your coverage, Form 1095-A, Part III, column B, may be wrong or blank or may report your applicable SLCSP ...
Craig W's user avatar
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8 votes
3 answers
3k views

If someone could claim me as a dependent, but they will not, am I required to check the "Someone can claim me..." box on my 1040?

Let's say that an adult is living with his parents. He meets all of the tests for being a dependent of his parents. Now let's say that he wants to file a tax return and claim the Recovery Rebate ...
Ben Miller's user avatar
  • 115k
7 votes
1 answer
117 views

Is there any program American can take advantage of to help offset childcare costs during Covid-19?

Due to Covid-19, my son's schools have been shut down for most of the year. Though my workplace allows parents to bring their children to work, he is special needs/has a disability, so requires much ...
Village's user avatar
  • 2,787
5 votes
2 answers
621 views

In which order are tax credits calculated if you earn both refundable and non-refundable?

Let's say you qualify for two types of tax credits: one refundable (EITC), and one non-refundable (adoption). To keep it simple, let's say that you owed $1000 in taxes, and you qualify for $1000 in ...
BlackThorn's user avatar
  • 2,288
6 votes
1 answer
2k views

How does a Child Tax Credit work to reduce my taxes?

Let's say I make 100K a year from my business and I have 3 kids under 9 years old. I read that each child can give me $2000 child tax credit. So if my 100K business income is taxed and say its 40%: ...
Patoshi パトシ's user avatar
4 votes
0 answers
107 views

If my job is exactly the same across three employers, is it considered one job or three for tax credit purposes?

The state of Oklahoma has a tax credit for engineers working in aerospace, described in form 564. The definitions on page 2 specifically state under "Qualified Employee": [the employee] was not ...
Nosjack's user avatar
  • 8,495
2 votes
0 answers
89 views

Does a state tax credit received as a gift count as income?

I have received a state tax credit for a historic rehabilitation project, which for a fixed fee the state of Arkansas allows me to partially sell/transfer. Whoever has the credit has up to five years ...
mpr's user avatar
  • 121
1 vote
2 answers
154 views

Will I actually use my Solar State & Federal Tax Credit?

I live in Iowa, and am considering a solar panel install on my house. It is likely the install will take place in 2020 making it eligible for the 2020 state and federal tax credits. I get that I will ...
Jon's user avatar
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3 votes
0 answers
87 views

What's wrong with transferring $12,000 from RRSP to RRIF and withdraw $2000/yr 65-71 inclusive? Why doesn't this give you $12000 out RRSP tax-free?

I live in ON. Jim Yih wrote Are You Taking Advantage of the Pension Income Tax Credit? Transfer RRSP to a RRIF. At age 65 transfer $12,000 to a RRIF and take $2000 out per year from age 65 to 71(...
user avatar
4 votes
2 answers
320 views

How much of my $5K/yr tuition tax credit ought I transfer to my mom who earned $40K/yr?

From 2009-2015, I was studying in universities, and earned no income. My parents paid all my tuition. We all live in ON. I filed my taxes, but didn't know about claiming tuition tax credits. I would'...
user avatar
1 vote
0 answers
32 views

Do I need to file taxes or can I file taxes educational credit refund purpose with 1098T?

I did not work at all but I received a 1098T for my online school. The 1098T has $12,070.04 on box 1 and $2,529.53 on box 5. I will like to know if I should file taxes with the 1098T only to get ...
user86465's user avatar
4 votes
1 answer
292 views

Does the federal Investment Tax Credit for solar installations take into account upgrade costs?

I have an older home that needs some upgrades in order to support a solar installation (new roof, 200A electrical panel, and replacing old wiring). Are the costs of doing those upgrades included (in ...
asgallant's user avatar
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0 votes
0 answers
62 views

Should I increase my tax liability to better utilize a nonrefundable credit?

My household qualifies for the maximum $2000 non-refundable Lifetime Learning federal tax credit. However, due to planned aggressive contributions to retirement accounts, my tax liability is low ...
thirtythreeforty's user avatar
3 votes
1 answer
183 views

US taxes small mistake that doesn’t change tax or refund

Last week I filed my tax return. For the child care credit, I wrote I spent X dollars. I redid the calculations, and turns out I spent X+6 dollars. This obviously can’t make me owe more taxes and ...
David's user avatar
  • 33
2 votes
1 answer
270 views

Did Schwab's Emerging Market ETF really pay no foreign tax related to the final distribution in 2018?

According to the 1099 from my broker, the Schwab Emerging Market ETF (SCHE) did not pay any foreign taxes associated with its final dividend for 2018, declared 12/28/2018. I'm quite skeptical as ...
Zack's user avatar
  • 21
0 votes
0 answers
43 views

How to value AMT Credit

I'm modelling some scenarios exercising and selling ISO stock options including "same day sell" and "hold for a year and a day", the latter one trying to take advantage of the long term capital gains ...
Hilmar's user avatar
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