How does adoption tax credit work?

adoption tax credit

Before one jumps to find the answer of this question, one should know ” What is adoption tax credit ?”. So let me begin with that. As per the Internal Revenue Code, anyone adopting a child whether via public foster care, domestic private adoption, or international adoption, shall get a tax credit for qualified adoption …

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How to Get Home Energy Efficient Tax Credit

home enegy efficient tax credit

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 …

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Gift Solar Electric & Claim Investment Tax Credit

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 …

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Gift Electric Car to Spouse & Get Tax |Credit

tax credit for plug-in electric vehicles

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.

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Child Tax Credit is Different Than Child & Dependent Credit !

child tax credit

child tax creditOften 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

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First Time Home Buyer Tax Credit : How to Get it from States?

first time home buyer tax credit

first time home buyer tax creditThe 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.

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Qualified Educational Expense Explained Through 8 FAQs!

qualified educational expenseIn 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.

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Child & Dependent Tax Credit Simplified !

dependent tax creditChild 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. 

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