A tax credit under Internal Revenue Code reduces your tax liability in a tax year. There are various types of federal income tax credits under US tax law.
Home energy efficient tax saving credit which is actually legally named as The Residential Energy (Efficient) Property Credit is revived on December 20, 2019, when President Trump signed Appropriations Act of 2020, that retroactively extended this law that expired after 2017. The Residential Energy (Efficient) Property Credit, introduced in 2006, applies to improvements to the …
Similar to gift idea about tax credit for buying electric vehicle , here is another one-The Solar Investment Tax Credit (ITC) that allows people getting a solar energy system installed to recoup 30 percent of the total cost of a solar energy system.The tax credit is now available to homeowners in some form through 2021 , so it …
This is holiday season and in a way gift seasons for all ! So here is an idea that will not only be a great gift idea but also pay you back in form of tax credit . The idea is simple -buy electric cars (EVs) as the federal government and a number of states offer tax credits for purchasing electric cars also known as plug-in electric vehicles.
Often taxpayers are confused about the two quite similar looking tax credits – Child Tax Credit and Child & Dependent Credit . This post is devoted entirely to the Child Tax Credit under which the maximum amount you can claim for the credit is $1,000 for each qualifying child. For knowing about Child & Dependent Tax credit , please read this article
Read moreChild Tax Credit is Different Than Child & Dependent Credit !
The answer to the often asked question “Is there a tax credit for first time home buyers?” is a definite no as far as tax credit while computing Federal Income Tax is concerned because first-time home buyer tax credit provision was applicable for taxpayers who purchased a home as your primary residence in 2008, 2009 or 2010. Therefore , as of now ,this program still applies to some people but not to others who did not buy the home during 2008 t0 2010. But , there is some hope under State tax law as most of the states in United States still provides some kind of tax credit for first time home buyers.
Read moreFirst Time Home Buyer Tax Credit : How to Get it from States?
In orde to claim education credit or deduction, one of the most important condition is that the exepnse on education should be within the Qualified Education Expense defined under Internal Revenue Code. So what does the term Qualified Educational Expense mean ? Generally , a qualified education expenses are amounts paid for tuition, fees and other related expenses for an eligible student.A close examination reveal that there are many conditions that needs to be satisfied before one can claim an expense for the purpose of educational credit. So here are five frequently asked questions which will cover almost all the necessary issues related to qualified educational expense.
Read moreQualified Educational Expense Explained Through 8 FAQs!
As per Internal Revenue Code , one can claim educational credit called American Opportunity Tax Credit or AOTC . This educational credit is allowed to a taxpayer for incurring qualified education expenses paid for an eligible student.
Read moreAOTC or American Opportunity Tax Credit : All You Ever Wanted to Know !
Child and Dependent Care Credit are part of tax credits which you can utilize to reduce the tax payable for a tax year. As you must be aware that while tax deductions and tax exemptions reduces your taxable income , the tax credit directly reduces the tax payable . So , it is quite advantageous to get tax credits. There are many types of tax credits available , but this post is devoted to tax credit you can enjoy for certain types of expense on child and dependents’ care.
