Tax Credits
Benefit for working people who have low to moderate income. Refundable tax credit.Particularly for individuals and couples with children
Earned Income Tax Credit
3 children age 16 and under
$4200
One qualifying child (EITC)
$3,461
Form completed by an employee to be given to an employer to ensure that correct federal income taxis deducted from the employees compensation.
W4
This form is used to report itemized deductions which can help reduce an individuals federal tax liability. 7 categories of expenses: medical, dental, taxes, gifts to charity etc.
Sch A
This Credit is worth up to $2000 per qualifying child.
Child Tax Credit
2 children age of 16 and under
$2,800
No Qualifying child (EITC)
$519
Gambling Winnings
W2G
report income or loss from a business you operated as a profession you practiced as sole proprietorship, self employment... must gross $5000 or more
SCH C
18 years or younger
Full Time Student
son, daughter, adopted, step sibling,niece, nephew
Must live more than half the year
Qualifying Child
1 child age of 16 and under
$1,400
Taxpayer unsure which parent should file dependents. What rule applies?
Tie-Breaker Rules
Student who paid qualified education expenses in the proceeding year.
1098 T
expenses cant exceed $5000
SCH CEZ
reduces the income that is subject to taxes
Tax Deductions
three or more qualifying children (EITC)
$6,431
credits that are treated as payments that are added to the federal income tax withheld
Refundable Credit
Third Party transactions
1099-K
1099 MISC
Provides dollar for dollar reduction of the actual tax itself that may result in a refund
Tax Credit
Two or more qualifying children
$5,716
This credit is deducted directly from the tax which results in a reduction in taxes that can reduce the tax to zero.
Non-Refundable credits
Power of attorney and declaration of Representative it designates as tax professional to represent a client.
2848
Education credits based on qualified education paid to an eligible post secondary educational institution.
8863