Credits
The most frequently asked tax questions related to Credits
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Answer Tax QuestionsAre contributions designated under section 414(h)(2) qualified for the Retirement Savings Contribution Credit?
Asked Thursday, January 05, 2012 by an anonymous user
Contributions designated under section 414(h)(2) are treated as employer contributions and as such they are not voluntary contributions made by the employee. They do not qualify for the credit and should not be included on Form 8880, line 2.
Child Tax Credit - Qualifying Requirements
Asked Thursday, January 05, 2012 by an anonymous user
A qualifying child for purposes of the child tax credit is a child who is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew) and
was under age 17 at the end of the current year,
Did not provide over half of his or her own support for the current year,
Lived with you for more than half of the current year
Is claimed as a dependent on your return,
Does not file a joint return for the year
Was a U.S. citizen, a U.S. national, or a U.S. resident alien.
was under age 17 at the end of the current year,
Did not provide over half of his or her own support for the current year,
Lived with you for more than half of the current year
Is claimed as a dependent on your return,
Does not file a joint return for the year
Was a U.S. citizen, a U.S. national, or a U.S. resident alien.
What are the MAGI phase-outs in claiming the Child Tax Credit?
Asked Thursday, January 05, 2012 by an anonymous user
Only those families that make less than $110,000 annually are eligible for the full credit. Families making between $110,00 and $130,000 receive a reduced credit (specifically $50 per $1,000 made over $110,000). Individuals who are unmarried must have earned under $75,000 to qualify for this credit. Taxpayers who are married but filing separate returns must have made no more than $55,000.
Child Tax Credit - Age requirement
Asked Thursday, January 05, 2012 by an anonymous user
They must not have reached the age of 17 by the end of the tax year.
Children may be your blood children, grandchildren, step children, and / or adopted children. Foster children also fall under this category as long as they have lived in your home for the entire year in question.
Qualifying children must be citizens or residents of the United States who can be claimed as dependents by the taxpayer.
Children may be your blood children, grandchildren, step children, and / or adopted children. Foster children also fall under this category as long as they have lived in your home for the entire year in question.
Qualifying children must be citizens or residents of the United States who can be claimed as dependents by the taxpayer.
Child Tax Credit - Amount allowed
Asked Thursday, January 05, 2012 by an anonymous user
Taxpayers who make under the $110,000 / year are currently still allowed to claim $1,000 per child as their Child Tax Credit. Families making between $110,000 and $130,000 receive a reduced credit (specifically $50 per $1,000 made over $110,000).
Can I claim an exemption for my child that I am adopting and who does not have a Social Security number yet?
Asked Tuesday, October 24, 2000 by an anonymous user
Parents in the process of a domestic U.S. adoption, and who do not have the child's Social Security number, should request an Adoption Taxpayer Identification Number by using IRS Form W-7A. Form W-7A is the Application for Taxpayer Identification Number for Pending Adoptions. To get this form you should go to either the IRS website, a local IRS office or call 1-800-829-3676.
Earned Income Credit - Form 1040EZ
Asked Tuesday, October 24, 2000 by an anonymous user
If you are unsure, it may be safer to file long Form 1040. You may use Form 1040EZ and claim the earned income credit, but there are several requirements that need to be met to use the short form 1040EZ. Read the instructions for Form 1040EZ or speak to your local CPA for assistance.
Are the expenses I incur as a foster parent deductible?
Asked Tuesday, September 26, 2000 by an anonymous user
The amount of foster parent expenses that exceed the payments from a state agency can be deducted as a charitable contribution on IRS Schedule A.
Are my child's adoption costs deductible?
Asked Monday, September 25, 2000 by an anonymous user
You may claim an adoption credit for adoption expenses paid in the year the adoption is finalized. Subject to certain Adjusted Gross Income limitations, adoptive parents of a child who is either under age 18, physically disabled or mentally challenged, may be able to take an adoption expense tax credit in the year the adoption is finalized. The credit is claimed on IRS Form 8839. Additional qualifications may pertain if the child is a U.S citizen or lived in a foreign country. Speak to your local CPA about the credit and/or exclusion available.
