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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15
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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 ...
10
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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 ...
8
votes
1answer
405 views

Repayment of 2010 First-time Homebuyer Tax Credit

My wife and I received the full $8000 first-time homebuyer tax credit when we bought our home in April 2010, but we're now planning to move. According to the IRS, since we've lived here for less than ...
7
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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
votes
4answers
672 views

Day care tax deduction

In the US, are day-care expenses tax deductible? And if so under what conditions? For example, if one parent is working, but the other is still going to (graduate) school, is any kind of deduction ...
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 ...
7
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2answers
2k views

In Canada how much are child care receipts worth for income tax?

How much can my family expect to save on taxes if we ask our sitter for a receipt for last year? Our kids are 6 and 10 and we paid about $2300 last year for occasional child care. My husband and I ...
7
votes
1answer
508 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; ...
6
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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%: ...
6
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2answers
474 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 ...
6
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1answer
194 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 ...
5
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2answers
3k views

UK income tax & charitable donations: How much is income tax reduced by donations?

To continue the theme... In the UK, how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
5
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1answer
195 views

Can an unmarried couple each claim half of the federal EV-tax credit?

We are an unmarried couple who bought a car together. We bought a plug-in hybrid (PHEV) and it qualifies for a $4000 federal tax credit. Can the EV tax credit be split between the two of us (filing ...
5
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1answer
243 views

Home Renovation Tax Credit (HRTC) - Can I still claim it even if I pay cash?

Can I still claim the Home Renovation Tax Credit even if I pay cash?
5
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1answer
479 views

We get receipts from our child care provider. Can we still claim a tax benefit even though they're not licensed?

We get receipts from our child care provider. Can we still claim a tax benefit even though they're not licensed? [Note: This is my paraphrased version of a similar question I answered at moms4mom.com....
5
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1answer
299 views

Foreign tax credit

I was a student in one of the universities in Texas before I graduated in Aug 2010 and moved back home to India. However since June 2010 till date, I have been working with a US based company. ...
5
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1answer
1k views

Are the HST rebates only paid for the first year, or will they be issued every year?

Will the HST rebates be paid each year after 2010 as well, or is this a one time thing?
4
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2answers
584 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?
4
votes
1answer
4k views

US income taxes for an Indian citizen with US-sourced income

I am an Indian citizen who left US after completing my masters in Aug 2010. Since then I have never re-entered the US and I stayed only in India. I was in the US only on a student visa and did not ...
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 ...
4
votes
1answer
279 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 ...
4
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1answer
2k views

Canadian income tax & charitable donations: How much is income tax reduced by donations?

In Canada, how much is income tax reduced by charitable donations? When filing, are there any special requirements to qualify for the deduction or credit?
4
votes
2answers
114 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 ...
4
votes
1answer
180 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 ...
4
votes
1answer
65 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
votes
1answer
188 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.) ...
4
votes
1answer
660 views

Clarification on American Opportunity Tax Credit (AOC) calculation for income tax return?

Background: I am a 22 year old college graduate who got a full time job after graduation. Numbers are close to actual values but rounded for simplicity. MAGI: $20000 Qualified Education Expenses ...
4
votes
1answer
3k 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 ...
4
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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 ...
4
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0answers
424 views

Donating to US versus Canadian charities to maximizing tax benefits

I am a US citizen and I have the option to make my charitable donations in either the US or Canada for the next few years. How do I maximize my tax benefit for a fixed donation size? My ...
3
votes
3answers
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
3answers
183 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
votes
2answers
604 views

The Canadian dividend tax credit: Why is it that someone can earn a lot in dividends but pay no/little tax?

from this link: http://www.taxtips.ca/glossary.htm#Dividend For an individual with no income other than taxable Canadian dividends which are eligible for the enhanced dividend tax credit, ...
3
votes
2answers
402 views

How is the Home Renovation Tax Credit (HRTC) supposed to be claimed? How does the credit work?

We built a new deck this year and we're expecting to take advantage of the Home Renovation Tax Credit (HRTC). How is it supposed to be claimed? How does the credit work? Would it be claimed on the ...
3
votes
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 ...
3
votes
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 ...
3
votes
1answer
118 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,...
3
votes
1answer
106 views

What is the status of the Child Tax Credit for 2013?

There have been many tax changes in the US recently, including the increase of the payroll tax. However, I haven't heard about the significant child tax credit. Will the child tax credit stay at its ...
3
votes
1answer
567 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 ...
3
votes
3answers
720 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 ...
3
votes
2answers
284 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'...
3
votes
1answer
105 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
votes
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
votes
1answer
294 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 ...
3
votes
1answer
2k views

What is CAN PRO?

I have had several deposits into my bank account over the past year from this ($125.??) I am sure it is federal and provincial and some kind of credit. But for what?
3
votes
1answer
78 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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0answers
43 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 ...
3
votes
1answer
143 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 “...
3
votes
1answer
156 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 ...
2
votes
1answer
1k views

First time home-buyer incentives require 3 years of primary residence, but can I move if I'm laid off?

My wife and I are 25-months into an FHA loan (we received a first time home buyer tax credit), and I seem to recall that we cannot sell or rent the property for at least 36-months. That wasn't a ...