Deductions
& credits
& credits
This tax incentive allows you to reduce your taxable income for qualified education expenses. What is it?
What is the Lifetime Learning Credit or American Opportunity Tax Credit (AOTC) ?
If you're married and choose to file your taxes jointly with your spouse, what is this filing status called?
What is Married Filing Jointly?
Income earned from working a job or providing services is commonly known as this. What is it?
What is Earned Income?
Individuals use this common form to report their wages, salaries, and tips. What is it?
What is Form W-2?
Tax preparers use this IRS form to demonstrate due diligence in verifying a taxpayer's eligibility for certain tax credits. What is it?
What is Form 8867?
You can claim this credit for each dependent child under the age of 17. What is it?
What is the Child Tax Credit?
If you're not married and don't qualify for any other filing status, you'll likely use this status. What is it?
What is Single?
If you receive dividends from stocks or interest from bonds, you're earning income through this source. What is it?
Hint - Investment income, employer income or business income ?
What is Investment Income?
Commons form (Form 1099-INT- interest income or Form 1099-DIV is used by banks and other financial institutions)
Individuals use this form to file their annual income tax return with the IRS. What is it?
What is Form 1040?
Completing Form 8867 is particularly important when claiming credits related to these individuals. What is the specific term for these individuals?
What are Qualifying Children?
This credit, designed to help low to moderate-income individuals and families, can reduce the amount of tax you owe. What is it?
What is the Earned Income Tax Credit (EITC)?
This filing status is for individuals who are widowed and have a dependent child. What is it?
What is Qualifying Widow(er) with Dependent Child?
This type of income includes payments you receive from the government, such as Social Security benefits. What is it?
Hint: Investment income , government income or earned income
What is Government Income?
Common form (SSA -1099- reports the total amount of benefits you received)
Self-employed individuals typically use this form to report their earnings and business expenses. What is it?
What is Form Schedule C?
The due diligence requirements outlined in Form 8867 aim to prevent errors and fraud related to this specific tax credit. What is it?
What is the Earned Income Tax Credit (EITC)?
This is the fixed dollar amount that individuals can deduct from their income without detailing individual expenses. What is it?
What is the Standard Deduction?
If you're married but choose to file separate tax returns, what is this filing status?
What is Married Filing Separately?
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This tax form is used to report incomes earned as an independent contractor or freelancer. What is it?
What is Form 1099-NEC?
Tax professionals must keep a copy of Form 8867 on file for how many years after the return's due date or filing date?
What is three years?
Taxpayers who choose not to take the standard deduction can itemize these, including expenses like medical costs and charitable contributions. What are they?
What are Itemized Deductions?
This filing status is available for unmarried individuals who maintain a home for a qualifying person, such as a child or relative. What is it?
What is Head of Household?
This income source involves profits from buying and selling assets like stocks or real estate. What is it?
Hint - Capital gains or profit and losses
What is Capital Gains?
Students may receive this form to report qualified educational expenses paid, often for purposes of claiming education-related tax credits. What is it?
What is Form 1098-T?
Failing to comply with the due diligence requirements on Form 8867 may result in penalties, especially when claiming this credit related to educational expenses. What is it?
What is the American Opportunity Credit or Lifetime Learning Credit?