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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2
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1answer
54 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" ...
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2answers
32 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 ...
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2answers
467 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 ...
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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 ...
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1answer
152 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 ...
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1answer
70 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 ...
4
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1answer
92 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 ...
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1answer
147 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'...
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4answers
147 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 ...
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1answer
62 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 ...
2
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1answer
53 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 ...
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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 ...
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2answers
3k 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 ...
2
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1answer
64 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 ...
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0answers
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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 ...
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2answers
1k 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
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1answer
113 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 ...
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2answers
108 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 ...
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1answer
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%: ...
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0answers
103 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 ...
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0answers
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 ...
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2answers
117 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 ...
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0answers
72 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(...
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2answers
279 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'...
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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 ...
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1answer
277 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 ...
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0answers
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 ...
3
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1answer
164 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 ...
2
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1answer
228 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 ...
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0answers
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 ...
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1answer
229 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,...
2
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1answer
557 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 ...
2
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1answer
161 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
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1answer
104 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 ...
7
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1answer
493 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
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1answer
102 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 ...
2
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1answer
121 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 ...
2
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1answer
114 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 ...
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0answers
35 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 ...
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0answers
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 ...
3
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1answer
142 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 “...
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3answers
1k 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 ...
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3answers
1k 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
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3answers
181 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, ...
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3answers
717 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 ...
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3answers
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 ...
4
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1answer
62 views

In what order do solar (rolling) and EV (non-rolling) tax credits stack?

Location: Texas, USA. Background: This year I installed a solar system on my house and bought an EV. Both have a tax credit associated with them. The EV credit ($7,500) does not roll over to next ...
4
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1answer
184 views

US - educational tax credit on imputed income for educational expenses?

My wife is employed by a university. Up to a certain monetary amount, she can take classes with no financial or tax impact. (I believe this amount is set by the IRS but that's not at issue here.) ...
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1answer
733 views

Can you claim a training course in Canada if you are provided a receipt but not a T2202A form?

I completed a 200h Yoga Teacher Training course in Canada but noticed that most yoga schools are not HRSDC certified providers, so am wondering if tuition tax credits can still be claimed?
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1answer
97 views

Are the education credits given on your taxes based on the amount of your expense, or is it a base amount of credit no matter your expenses?

My daughter needs to prove her education expenses for the education credits she received on her 2014 taxes. This was her first year filing taxes and she did use a tax lady. The tax lady has told us we ...