Here are some of the Non Refundable Federal Tax Credits that may be available to you:
Child Tax Credit:
This credit is for people who have a qualifying child. Click here for the IRS definition of a Qualifying Child and Examples. Please note the maximum age of a qualifying child for purposes of this credit is 16. The maximum amount you can claim for the credit is $1,000 for each qualifying child. To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child.
Click Here for the Limits on the credit.
Click Here for more on the Child Tax Credit - Publication 972
Child and Dependant Care Credit:
You may be able to claim the child and dependent care credit if you paid work-related expenses for the care of a qualifying individual. The credit is generally a percentage of the amount of dependent care expenses you paid to a care provider for a qualifying individual. The percentage depends on your adjusted gross income. Dependent care expenses qualifying for the credit are those paid for the care of a qualifying individual to enable you to work or actively look for work.
For purposes of the child and dependent care credit, to find out who is a qualifying individual Click Here.
To learn more about the Child and Dependent Care Credit Click Here
For additional information, refer to Publication 503, Child and Dependent Care Expenses.
Education Credit:
There are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American Opportunity Credit and the Lifetime Learning Credit. Expenses that qualify for an education credit are qualified tuition and related expenses paid by the taxpayer during the taxable year. Qualified tuition and related expenses are tuition and fees required for the enrollment or attendance of the taxpayer, the taxpayer's spouse or the taxpayer's dependent at an eligible educational institution for courses of instruction. An eligible educational institution means a college, university, vocational school or other postsecondary educational institution that is accredited and eligible to participate in the student aid programs administered by the Department of Education.
What is AOTC?
The American Opportunity Tax Credit is a refundable tax credit
for college education expenses paid by the student, parent(s) or
any other person providing payment on behalf of the student.
The AOTC applies to the first four years of college education and
the student must attend at least half-time. AOTC provides up to
$2,500 in tax credits on the first $4,000 of qualifying educational
expenses including course materials and tuition. Up to 40 percent
of the credit is refundable. This means $1000 of it can generate a
refund to you or reduce your overall tax liability. There are income
restrictions when claiming AOTC.
What is LLC?
The Lifetime Learning Credit is a non-refundable tax credit. This
credit provides up to $2,000 in tax credits per tax return on the
first $10,000 of college tuition expenses. You can claim qualifying
expenses for any level of college or education courses to advance
or improve job skills. With the Lifetime Learning Credit there is no
minimum enrollment requirement or limit on the number of years
you can claim the credit.
Compare Education Credits and Tuition and Fees Deduction
Tax Benefits for Education
Are you Eligible to claim an Education Credit?
Retirement Savings Contributions Credit:
You may be able to take a tax credit if you make eligible contributions to a qualified retirement plan, an eligible deferred compensation plan, or an individual retirement arrangement (IRA).You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). This credit could reduce the federal income tax you pay dollar for dollar. For more information Click Here.
If you make eligible contributions to a qualified retirement plan, an eligible deferred compensation plan, or an IRA, you can claim the credit if all of the following apply:
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You were born before January 2, 1996.
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You are not a full-time student
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No one else, such as your parent(s), claims an exemption for you on their tax return.
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Your adjusted gross income is not more than: $59,000 if your filing status is married filing jointly, $44,250 if your filing status is head of household, or $29,500 if your filing status is single, married filing separately, or qualifying widow(er).
Click Here and goto Chapter 10 on publication 571 for more information on Retirment Savings Contributions
