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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3
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2answers
232 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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0answers
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
158 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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1answer
84 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
19 views

Which tax credits are calculated in proportion of time of residence in Canada and which are not?

I became a Canadian resident in 2018, having spent 260 in Canada in the tax year. I've read some official guides, and examples there instruct to prorate federal credits to time of residence in Canada. ...
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3answers
489 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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0answers
52 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
146 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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0answers
32 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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0answers
47 views

US Employee at a US company at a Mexican facility pays a “Mexican Tax”. How do I claim it on 1040

I am a US Employee working at a US company at a Mexican facility and I am being deducted a "Mexican Tax" on my wage slip each pay period. The company has not listed the Mexican tax on my W2 and ...
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1answer
108 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 ...
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1answer
78 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)". ...
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1answer
182 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 ...
3
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1answer
88 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 ...
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0answers
100 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
113 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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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 ...
3
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1answer
93 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
98 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
92 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 ...
4
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1answer
57 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 ...
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0answers
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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0answers
41 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 ...
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3answers
809 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
696 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
153 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
811 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 ...
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2answers
9k 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://...
3
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1answer
72 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 ...
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3answers
238 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 ...
4
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1answer
120 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.) ...
3
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1answer
148 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 ...
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1answer
320 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 ...
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1answer
404 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
83 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
231 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 ...
0
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1answer
57 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 ...
5
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2answers
549 views

U.S. income tax & charitable donations: How much is income tax reduced by donations?

In the U.S., how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
3
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1answer
87 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,...
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1answer
385 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
85 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
387 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). ...
2
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1answer
419 views

Can I claim the child care tax credit in addition to using a dependent care FSA?

Dependent care FSA is capped at $5000 annually and I use this entirely. The annual child care credit is $3000. If my expenses are over $8000, can I utilize both of these in the same calendar year?
4
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1answer
176 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
183 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 ...
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1answer
81 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 ...
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 ...
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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2answers
276 views

Claiming residential energy credits on US tax return

I just did my 2014 taxes last night through Tax Act Online and I claimed an expense of $2,000 for improved insulation and $2,500 for replaced doors and windows on my house. I think those estimated ...
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1answer
898 views

Taxable Scholarship Qualifications

I am trying to determine whether or not a particular scholarship I received (the Palmetto Fellows Scholarship in South Carolina) may or must (or may not or must not) be considered taxable income. ...