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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6
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1answer
1k 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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96 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
84 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
83 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 ...
4
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56 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(...
3
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2answers
255 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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29 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 ...
3
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1answer
257 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 ...
0
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56 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
154 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 ...
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1answer
151 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
35 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 ...
1
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1answer
211 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,...
1
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1answer
285 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
105 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
92 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
244 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
97 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
112 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
99 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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31 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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45 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
124 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 ...
3
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3answers
982 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
168 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, ...
3
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3answers
624 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
58 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
141 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
555 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
94 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 ...
3
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1answer
151 views

Tax relief on UK salary income

I am tax-resident in the USA and non-resident in the UK. I receive income from my former UK employer (in the form of stocks vesting in the UK) on which I pay UK income tax. Is this type of income ...
6
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1answer
190 views

ACA Premium Tax Credit - Claiming for prior year

At the start of the year I did not think I would qualify for the subsidy, but as things have turned out my income was less than the maximum. The health plan I used was available both through the ...
0
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1answer
374 views

Tax question for US citizen with postdoctoral fellowship in Europe

I have received an offer for a postdoc in Europe. The postdoc gets paid a scholarship that is not taxed in the European country. I will be living in this country 12 months out of the year and will ...
3
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1answer
73 views

Nonbusiness Energy Property Credit for 2015 Taxes (USA Taxes)

In December of 2015, I had a new home A/C and furnace system installed. I wrote the check to the installer in January of 2016 for the job. I just found out that in December of 2015, congress extended ...
3
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1answer
257 views

Claiming foreign tax credit by amending a tax return

I am a Norwegian citizen who has been living and working in the US (California) as a resident alien since October 2014. These were my major sources of income in 2015: Wages from my American employer ...
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3answers
250 views

Should I File as an Independent in Order to Claim the American Opportunity Tax Credit?

My financial circumstances: I am a full-time undergraduate student employed by the university through the federal work-study program. I expect my total income for the year of 2016 to be a little over ...
0
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1answer
59 views

Get rebate if investment tax credits exceed taxes due?

If I get a large investment tax credit that exceeds the taxes that I owe, do I get a tax refund, or is the credit lost? If excess credits cannot be turned into a refund can I defer them to another ...
3
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1answer
91 views

Will I lose the AMT tax I paid if my startup fails?

I recently parted ways with a startup. I was granted options and now must exercise them. When I exercise them, I will incur the Alternative Minimum Tax (AMT). If the company fails and goes bankrupt,...
1
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1answer
390 views

Foreign Tax Deduction vs Credit

As I understand it, the Form 1116 Foreign Tax Credit is intended to allow you to avoid double taxation on foreign income. You are allowed a credit up to the amount of US tax that is due to the ...
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1answer
190 views

School didn't add tuition for spring semester to 1098-T. Can I still claim it?

I graduated college in May 2015 after completing my spring semester. I later received the 1098-T from my school. My school only listed my $200 lab fee for the spring semester because they ...
2
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1answer
416 views

Can MOOCs be treated the same as university for taxes (US)?

Without understanding a lot about taxes, I know that there are several tax credit opportunities for college students in the US (The American Opportunity tax credit, Lifetime Learning Credit, etc). ...
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2answers
10k views

Can I claim GST/HST Input Tax Credits (ITCs) on Uber, taxi, or limousine fares?

Uber invoices do not include a GST/HST number, and tax is not separated. On the other hand, Uber drivers ARE required to be registered for GST/HST and collect & remit the tax. http://...
4
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1answer
178 views

How is the obamacare tax credit calculated?

In the first 9 months of this year I had a relatively high income. However, I have no income since October. I used to have health insurance from my employer but now I am trying to get health insurance ...
2
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1answer
191 views

Do you pay any tax on dividends up to £30k?

I'm a bit confused how dividends are taxable. Assuming I want to take ~£30k dividends ('tax credit' excluded) on which I will use my ~£10k personal allowance. Do I pay any income tax from it (from ...
2
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0answers
79 views

Understanding the Home renovation tax credit in ontario

I am trying to figure out the home renovation tax credit Does it only apply to the home I live in? If I currently live in a rental property but am allowed to do renovations, can I apply for the ...
0
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1answer
83 views

Tax exemptions for US stocks held in a Candian account

As a Canadian, if I buy US stocks and receive dividends in a non tax sheltered account, then those dividends are not suited for dividend tax credit. Also, if I sell and incur a gain(within 1 yr), do I ...
3
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1answer
2k views

Unused Education Tax Credit carryover amounts in ON Canada

I am filing taxes in Ontario, Canada, using simpletax.ca which has been a super useful platform. I am struggling to understand how it is calculating my refund, however. From 2013, I have $16,473 in ...
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4answers
2k views

American opportunity credit with foreign country education

I am reporting 2014 tax by TaxAct software. One field is for education. My situation is I took a course for a certification in 2014. It was my first education course in US. I earned my Phd in a ...