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.
100
questions
1
vote
0
answers
29
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 ...
0
votes
1
answer
77
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 ...
- 29
2
votes
1
answer
448
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 : ...
- 21
1
vote
1
answer
125
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 ...
- 389
2
votes
2
answers
142
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" ...
- 135
1
vote
2
answers
36
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 ...
- 223
6
votes
2
answers
481
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 ...
- 161
0
votes
0
answers
19
views
What date am I supposed to enter on Form 1116 Copy 1 (Foreign Tax Credit) in Turbotax?
As a US lawful permanent resident, I'm filing for my taxes in the US. I have some dividends in a non-US brokerage account. What date am I supposed to enter on Form 1116 Copy 1 (Foreign Tax Credit) in ...
1
vote
1
answer
158
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 ...
- 1,162
1
vote
1
answer
116
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 ...
- 13.8k
4
votes
1
answer
129
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 ...
- 1,286
1
vote
1
answer
255
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'...
- 345
2
votes
4
answers
182
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 ...
- 143
0
votes
1
answer
90
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 ...
- 147
2
votes
1
answer
55
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 ...
- 1,262
1
vote
0
answers
55
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 ...
- 7,998
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 ...
- 7,998
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 ...
- 1,269
3
votes
0
answers
75
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 ...
- 14.6k
8
votes
2
answers
2k
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 ...
7
votes
1
answer
114
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 ...
- 2,327
4
votes
2
answers
127
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 ...
- 2,250
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%:
...
- 1,555
4
votes
0
answers
104
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 ...
- 7,998
2
votes
0
answers
88
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 ...
- 121
1
vote
2
answers
145
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 ...
- 111
2
votes
0
answers
73
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(...
user11761
3
votes
2
answers
294
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'...
user40269
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 ...
- 11
4
votes
1
answer
281
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 ...
- 201
0
votes
0
answers
61
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 ...
- 163
3
votes
1
answer
169
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 ...
- 33
2
votes
1
answer
248
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 ...
- 21
0
votes
0
answers
40
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 ...
- 6,989
1
vote
1
answer
232
views
Premium tax credit repayment
Due to having withdrawn money from IRA to purchase a home, I had to repay the entire Premium Tax Credit in the amount of $15,000.00 when I filed my taxes in February 2018.
Can I deduct the entire $15,...
- 11
3
votes
1
answer
639
views
Where are additional dependent children listed on the 2018 1040 tax form?
I was getting a head start on my taxes and wondering what form there is for listing out additional children. On the old form, I attached another form (probably something just autogenerated by my ...
- 133
2
votes
1
answer
164
views
MA 2015 Schedule Z line 12: "Income tax paid to another state or jurisdiction (from worksheet)" -> what worksheet are they talking about?
I am filling out a 2015 Schedule Z (mirror) in Massachusetts, USA, which I plan to attach to a 2015 Form 1 (mirror).
Line 12 says: "Income tax paid to another state or jurisdiction (from worksheet)". ...
3
votes
1
answer
106
views
Do I not qualify for any education tax breaks?
I'm planning on going back to school for a graduate degree. Looking at the different tax breaks I could find related to education:
The American Opportunity tax credit: This is not an undergraduate ...
- 3,026
7
votes
1
answer
530
views
If your spouse passes away do you lose any tax credits (GST and Trillium Credit) owed to them before they died?
My husband passed away this pass on 17-July-2018. Until he passed away we hadn't filed our income tax for the years 2015, 2016 and 2017.
I am wondering if and when I do decide to file our taxes;
...
3
votes
1
answer
106
views
USA: Can I deduct the cost of solar power that I didn't earn back in credits?
I am located in the USA. The federal government allows a 30% tax credit on solar. Details here: http://programs.dsireusa.org/system/program/detail/1235
In addition to that, it appears to me that ...
- 1,286
2
votes
1
answer
126
views
Used ToD life insurance to pay estate bills; any tax benefit to the insurance beneficiary? (USA)
The deceased owned the life insurance policy and named a single beneficiary to receive the insurance money (transfer on death).
That single beneficiary used all of the life insurance proceeds to pay ...
- 511
2
votes
1
answer
120
views
How is the federal tax credit on EV's applied?
My current vehicle is on it's death bed and I am trying to do my research before purchasing a new all electric vehicle and one of my biggest
considerations is the utilization of the federal tax ...
- 427
1
vote
0
answers
36
views
Can sales tax in a foreign country be used as credits to offset US taxes?
Say you are an American citizen living in the UK.
You are required by [draconian] U.S. law to pay full taxes on your income as though you are resident in the U.S. However, there are several treaties ...
- 23
1
vote
0
answers
48
views
Avoid wasting Canadian tuition credit with double taxation on Canadian Income in US
I live in US with income in Canada and have a large amount of unused tuition tax credits in Canada.
My understanding is that when doing US Tax I should report my full Canadian income and the amount ...
- 143
3
votes
1
answer
154
views
Foreign Tax Credit / form 1116
I have a foreign retirement income. Income tax is withheld at source in a foreign country. As I have to file form 1116 to get the FTC (foreign tax credit) I need to know if such retirement is a “...
- 41
3
votes
3
answers
2k
views
Federal ID number for West London University
My son is attending West London University and I need to fill out tax form 1098T for the IRS to get the American Opportunity Credit. They are asking for the university's "Federal ID number" (It may ...
- 131
3
votes
3
answers
2k
views
Can I increase value of non-refundable credit by paying less taxes?
I'm in the United States. The Child Tax Credit is a non-refundable credit of $1000.
Scenario 1 : I do my taxes at the end of the year and before applying the credit I owe $1000, then presumably ...
3
votes
3
answers
190
views
Why don't "normal" tax credits apply towards self-employment tax?
This is a USA tax question.
Preparing my taxes (regular form 1040), I noticed that the "Other Taxes" section comes after the "Tax and Credit" section. I have some "wages, salaries, tips" income, ...
- 1,262
3
votes
3
answers
760
views
Does the increase in the Child Tax credit affect the Empire State child credit as well?
NY state has a tax credit called the Empire state child tax credit. According to the description of this credit on the NY state department of finances website
If you claimed the federal child tax ...
- 601
10
votes
3
answers
1k
views
Can you be penalized for setting an arbitrarily high number of allowances on your W-4?
I withheld too much in taxes this year. I will benefit a good amount from the Lifetime Learning Credit, which I hadn't heard about until today. Even if I don't pay a cent in taxes for the rest of the ...
- 621