Credits

Credits

Can a minor claim Oregon 529 credit using UTMA funds?

I'm an Oregon resident and so is my 5 year old, dependent daughter. Every year I contribute to her 529 plan and take Oregon's tax credit for this. If I open a custodial 529 account for my daughter and then use funds from her UTMA/UGMA account to contribute to this would she then be considered the contributor and thus would my daughter then be able to take this same tax credit on her Oregon state tax return?

Credits

How to report ERTC refund checks

I operate a C Corporation and file IRS form 1120 to report income. In June of 2023 I applied for the Employee Retention Tax Credit (ERTC). I amended my employer's quarterly federal tax return IRS form 941's for years 2020 and 2021. I received the ERC refund checks in 2025. How do I report the refund I just received? Since I amended the IRS form 941, do I have to go back and amend my form 1120 tax returns for years 2020 and 2021?

Credits

Children

My ex and I have it in our court agreement that he claims the children for the child tax credit. Is it possible for me to claim them as non dependents so I can get a little break on my taxes? (we have week on week off 50/50 custody so the children are in both households equally). I have filed my taxes and read things thoroughly. I put on my return that he was going to claim them per court agreement. They are listed as non dependents on my return.

CPA Answer:

Casey,  Only one parent is entitled to claim their dependents.  Since you have a court agreement giving him the dependents and the child tax credit, these are his to claim.  Your tax returns should reflect single with no dependents.

Jeanne Adams CPA

Firestone, CO 80504

Answer Provided by: Jeanne Adams

Earned Income Credit

2018-Earned income tax credit

CPA Answer:

For 2018, the maximum credit amount is $3,461 for one qualifying child, $5,716 for two qualifying children, $6,431 for three or more qualifying children, and $519 for taxpayers who have no qualifying child. The phaseout ranges for the credit have been adjusted for inflation

Answer Provided by: CPAdirectory

Child Tax Credit

2018-Child Tax Credit

CPA Answer:

Pursuant to the Act, the child tax credit is increased to $2,000 per eligible child for 2018 through 2025.

The income level at which the credit phase-out begins is increased to $400,000 for taxpayers filing married filing jointly and $200,000 for all others. The credit continues to phase out at a rate of $50 for every $1,000 that AGI exceeds the threshold amounts.

The refundability of the credit was also modified so that the earned income threshold is reduced to $2,500.

Answer Provided by: CPAdirectory

Retirement Savings Credit

AGI Limitation - Retirement Savings Contribution Credit

CPA Answer:

You are not eligible for the credit if your adjusted gross income exceeds a certain amount. In 2013, You cannot take the credit if either of the following applies: The amount of AGI on Form 1040, line 38 ; Form 1040A, line 22; or Form 1040NR, line 37, is more than $35,500 ($38,500 if head of household; $59,000 if married filing jointly).
In 2014, You cannot take the credit if either of the following applies: The amount of AGI on Form 1040, line 38 ; Form 1040A, line 22; or Form 1040NR, line 37, is more than $36,000 ($39,000 if head of household; $60,000 if married filing jointly

Answer Provided by: CPAdirectory

Credits

Savers credit- limitations

CPA Answer:

Eligible taxpayers must be at least 18 years of age.
Anyone claimed as a dependent on someone else’s return cannot take the credit.
A student cannot take the credit. A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.

Answer Provided by: CPAdirectory

Credits

Savers Credit

CPA Answer:

The saver’s credit can increase a taxpayer’s refund or reduce the tax owed. Though the maximum saver’s credit is $1,000, $2,000 for married couples
The saver’s credit can be claimed by:Married couples filing jointly with incomes up to $59,000 in 2013 or $60,000 in 2014;
Heads of Household with incomes up to $44,250 in 2013 or $45,000 in 2014; and Married individuals filing separately and singles with incomes up to $29,500 in 2013 or $30,000 in 2014

Answer Provided by: CPAdirectory

Earned Income Credit

Earned Income Credit - General Eligibility

CPA Answer:

Rules for every taxpayer:
Must have earned income, such as wages, tips or the income from running a business or farm. Most other types of income, such as retirement pensions, though usually taxable, do not count as earned income.
Must have a Social Security number that is valid for employment for self, spouse and any qualifying children.
A person can get the credit even with a small amount of investment income, such as interest from a bank account. However, the amount of investment income is limited to $3,400.
The filing status used must be single, head of household, married filing jointly or qualifying widow or widower. A taxpayer who files as married filing separately cannot get the credit.
Generally, must be either a U.S. citizen or resident alien. Cannot be a qualifying child of another person. Cannot file Form 2555 or Form 2555-EZ.

Answer Provided by: CPAdirectory