Tax Credits - indiv

Question 1

What are tax credits

Answer 1

reduce personal tax liability

Question 2

What are two types of tax credits

Answer 2

Personal tax credits: reduce tax, but no refund

Refundable credits: reduce tax and can create refund

Question 3

What are the Personal tax credits

Answer 3

1) Child n Dependent care credit
2) Elderly and perm disabled credit
3) Education credits
- liftime learning credit
- american opportunity credit
4) retirement savings contribution credit
5) foreign tax credit
6) general business credit
7) adoption credit

Question 4

What are the refundable credits

Answer 4

1) Child tax credit (refund limited)
2) earned income credit
3) withholding taxes (w-2)
4) excess social security paid
5) american opportunity credit (40% refundable)

Question 5

Child and Dependent Care Credit

Answer 5

tax credit of 20 to 30 percent of eligible expenditures

one dependent max 3k
two or more max 6k