The Additional Child Tax Credit was the refundable part of the Child Tax Credit. The refundable credit was revamped under the Tax Cuts and Jobs Act.

An Act To Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018

What's New with the Child Tax Credit after Tax Reform?

American Rescue Plan Act Funding Breakdown.

Child Tax Credit and Credit for Other Dependents at a Glance

The Child Tax Credit Benefits Eligible Parents

What You Need to Know about CTC, ACTC and ODC

Advance Child Tax Credit Payments in 2021

Table of Contents
What Is the Additional Child Tax Credit?
Understanding the Additional Child Tax Credit Since the child tax credit was non-refundable, the additional child tax credit refunded the unused portion of the child tax credit to the taxpayer. Families who wanted to keep the unused portion of the child tax credit could go the route of another available tax credit called the additional child tax credit. To be eligible for the child tax credit, the child or dependent must:
Be 16 years or younger by the end of the tax year
Be a U.S. citizen, national, or resident alien
Have lived with the taxpayer for more than half of the tax year
Be claimed as a dependent on the federal tax return
Not have provided more than half of their own financial support
Have a Social Security number While the additional child tax credit was eliminated in 2018 under the Tax Cuts and Jobs Act (TCJA), up to $1,400 of the $2,000 child tax credit can be refundable for each qualifying child if certain conditions are met.

Additional Child Tax Credit

In the United Kingdom, additional personal allowance was an extra deduction set by HM Revenue & Customs (HMRC) on income tax returns and later abolished.

This allowance provided tax relief to those who qualified—single, separated, or widowed taxpayers who didn't use the married couple allowance.
Those who qualified were required to be financially supporting a child under 16.
The additional personal allowance was eliminated in 2000.
Income taxes are filed with and collected by HM Revenue and Customs in the United Kingdom. This means every taxpayer is subject to the same personal allowance, regardless of marital status, gender, and whether or not they have children.﻿﻿﻿ The standard personal allowance in the U.K. for the 2020–2021 tax year is £12,500.﻿﻿﻿ There is no income tax payable on any income earned under this amount. The amount of income tax paid in each tax year depends on how much earnings are above the personal allowance and how much of a person's income falls within the various tax bands. The term additional personal allowance refers to an extra tax deduction set forth by HM Revenue and Customs (HMRC) on income tax returns in the United Kingdom.

Additional Personal Allowance

The advanced premium tax credit helps alleviate the cost of monthly health insurance premiums for qualifying participants.

How to save on your monthly insurance bill with a premium tax credit

Questions and Answers on the Premium Tax Credit

The advanced premium tax credit is a federal tax credit for individuals that reduces the amount they pay for monthly health insurance premiums when they buy health insurance on the Marketplace. The tax credit is not automatic; you either must apply for it when you sign up for insurance by having the Marketplace website calculate the amount of the credit based on information supplied at that time, or you can pay all the normal premiums and then claim the tax credit back on the tax return when filing the next year. The advanced premium tax credit is a credit in the Patient Protection and Affordable Care Act (ACA), also referred to colloquially as Obamacare, which was signed into law on March 23, 2010, by President Barack Obama.
The tax credits are not like regular tax credits that must be calculated and applied to the taxpayer’s tax liability and either refunded or used to reduce liability when taxes are filed for the previous year. The advanced premium tax credit is a federal tax credit for individuals that reduces the amount they pay for monthly health insurance premiums when they buy health insurance on the Marketplace. The qualifications for the Advanced Premium Tax Credit are that you are ineligible for either Medicaid or the Children’s Health Insurance Program (CHIP), ineligible for employer-sponsored health insurance, and have a modified adjusted gross income (AGI) of between 100% and 400% of the federal poverty level.
The American Rescue Plan Act of 2021 removes the cap on income for the advanced premium tax credit for 2021 and 2022.

Advanced Premium Tax Credit

The alternative fuels credit, as outlined by the Internal Revenue Code, is a non-refundable tax credit for non-alcohol alternative fuel users.

Form 4136: Credit for Federal Tax Paid on Fuels

Biodiesel and Alternative Fuels; Claims for 2018-2019

Biodiesel and Alternative Fuels; Claims for 2018-2019,

Energy Tax Policy: History and Current Issues

Fact Sheet: Federal Tax Incentives Encourage Alternative Fuel Use

Part III - Administrative, Procedural, and Miscellaneous (Alternative fuel; definition of liquid hydrocarbon)

The alternative fuels credit is a non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the taxpayer's vehicles for business. A $0.50 per gallon credit is available for natural gas, liquefied hydrogen, propane, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and compressed or liquefied gas derived from biomass.﻿﻿﻿ For propane and natural gas sold, the tax credit is based on the gasoline gallon equivalent (GGE) or diesel gallon equivalent (DGE). The Internal Revenue Service considers alternative fuels to be liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid hydrocarbons derived from biomass, and P-Series fuels. The alternative fuels credit is a non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the taxpayer's vehicles for business. 2:32
The alternative fuels credit, which is detailed in the Internal Revenue Code (IRC), originated from the idea that the U.S. should reduce its dependence on imported oil and embrace advanced fuels and vehicle technologies.

Alternative Fuels Tax Credit

The alternative motor vehicle credit is a tax credit for buying vehicles with alternative fuel cells.

About Form 8910, Alternative Motor Vehicle Credit

The alternative motor vehicle credit is a tax credit given to individuals who purchase vehicles that derive their power from alternative energy sources. A vehicle qualifies for the alternative motor vehicle credit if it has at least four wheels and qualifies as a qualified fuel cell vehicle. The alternative motor vehicle credit is a tax credit given to individuals who purchase vehicles that derive their power from alternative energy sources. The manufacturer or distributor of the vehicle can provide the taxpayer with a letter of certification for the IRS for purposes of claiming the alternative motor vehicle credit. Taxpayers are eligible to receive this nonrefundable alternative motor vehicle tax credit if they are the original purchasers of a vehicle after January 1, 2006.

Alternative Motor Vehicle Credit

The American Opportunity Tax Credit is a credit for expenses incurred in the first four years of post-secondary education.

Tax Reform Provisions that Affect Individuals.

Compare Education Credits and Tuition and Fees Deduction.

Tax Benefits for Education: Information Center

The American Opportunity Tax Credit is a tax credit for qualified education expenses associated with the first four years of a student’s post-secondary education. MAGI Eligibility for American Opportunity Tax Credit
Married, Filing Jointly
Full Credit
$80,000 or less
$160,000 or less
Partial Credit
More than $80,000, less than $90,000
More than $160,000, less than $180,000
Not Eligible
More than $90,000
More than $180,000
The AOTC and the Lifetime Learning Credit (LLC) are two popular tax breaks that taxpayers with educational expenses can take advantage of on their annual tax return. The American Opportunity Tax Credit is a tax credit for qualified education expenses associated with the first four years of a student’s post-secondary education. Federal and state governments support higher education expenses through a number of tax credits, tax deductions, and tax-advantaged savings plans. The AOTC can be claimed on the tax return of a student, a person claiming the student as a dependent, or a spouse making post-secondary education payments.

American Opportunity Tax Credit (AOTC)

The Annual Investment Allowance is a form of tax relief for British businesses that is designated for the purchase of business equipment.

Temporary increase in the Annual Investment Allowance

Capital Allowances Manual: PMA: Qualifying expenditure: Annual Investment Allowance (AIA) qualifying expenditure: what is AIA qualifying expenditure?

Claim Capital Allowances: What You Can Claim On

Capital Allowances Manual: Plant and Machinery Allowances (PMA): cars: outline - meaning of ‘car

The Annual Investment Allowance (AIA) is a form of tax relief for British businesses that is designated for the purchase of business equipment. Most assets purchased for business purposes can be claimed as qualifying expenses for AIA, with the primary categories as listed below:
Office equipment including computer hardware and certain types of software, and office furniture
Parts of a building referred to as integral features
Certain fixtures, such as air conditioning, fitted kitchens, or bathroom fittings
Lorries or vans used for moving purposes
Machines used for business purposes
Agricultural machinery including tractors
Machines used for providing entertainment, such as arcade game machines
Assets that cannot be claimed include buildings, cars, land or structures such as bridges or docks, and items used solely for business entertainment. ﻿﻿ Part of the cost of cars used for business purposes can be deducted, but not as a part of the AIA﻿. ﻿﻿The exception to this rule on cars is the cars used by driving schools, which must be adapted to have dual control, and as such may be claimed through AIA. The Annual Investment Allowance (AIA) is a form of tax relief for British businesses that is designated for the purchase of business equipment. The Annual Investment Allowance (AIA) is a tax relief scheme for British businesses that is designated for the purchase of business equipment. A sole proprietor or member of a partnership with more than one business is usually eligible for the Annual Investment Allowance for each business, unless the businesses are operated on the same premises and/or conduct similar activities.

Annual Investment Allowance (AIA)

Assessable profit is a calculation that determines an individual's taxable income based upon gains or losses on funds held in taxable investment accounts.

Publication 925: Passive Activity and At-Risk Rules

A Brief Guide To Taxes Administered By The Inland Revenue Department 2018 - 2019

Assessable profit is a calculation used in tax law to determine an individual's taxable income based upon gains or losses on funds held in taxable investment accounts. In Nigeria, corporate income taxes are determined by calculating assessable profit as net profit, or the total profit the company made during the basis period, plus disallowable expenses and taxable income not reported, less allowable expenses not reported and non-taxable income reported. This income, combined with income earned from tips, wages, and salaries, represents the individual’s assessable income, or the total of income made from working a job, selling investments or collecting returns on investments, selling property, collecting rent on rental properties, and any other sources of income for an individual during a tax period. This can be contrasted with non-taxable or tax-deferred investment accounts, which are funded with pre-tax dollars (or after-tax dollars in the case of a Roth IRA) and the money in the account is able to grow free from taxability.
Income from investment accounts is considered passive income because it generates income for the investor without them having to do anything to earn it. Taxable income is the portion of that income that can be used to calculate the individual’s tax burden and is usually determined by deducting certain allowable expenses from the assessable income.

Assessable Profit

Away from home is the IRS criteria used to establish whether or not you are within commuting distance from home. 

"Away from home” is a phrase used by the Internal Revenue Service (IRS) to express that a taxpayer is not within commuting distance from home. A taxpayer can deduct travel, lodging and food expenses while working away from home, but not while working a distance that is considered short enough to commute home, even if the taxpayer stays in a hotel and pays for meals to avoid having to commute home. For example, if the taxpayer lives in Detroit but works in Toledo, and stays in a hotel in Toledo during the week but travels home every weekend to Detroit, the taxpayer’s tax home is considered to be Toledo. Deductible expenses include travel to and from the tax home, lodging, food, dry cleaning or laundry, use of the taxpayer’s car at the work location, taxis or public transportation costs at the work location, business phone calls and tips paid out at the work location. If the taxpayer works a distance that is within commuting distance from home, not away from home, but chooses to sleep in a place that is not home, the associated costs are not deductible.

Away From Home

The black liquor tax credit is a slang name for a loophole in the tax code that gave paper companies billions of dollars in tax credits.

Tax Loopholes Block Efforts to Close Gaping U.S. Deficit

Credit for alcohol fuel, biodiesel, and alternative fuel mixtures

IRS Offers Guidance on Accounting for Black Liquor Credit Repayments

Congress approves extenders packages, which includes excise tax provisions affecting federal taxes on fuel, alcohol and manufacturers

Retroactive Fuel Credit Extensions May Result in Refunds

The so-called black liquor tax credit was a tax loophole in the Alternative Fuel Mixture Credit (AFMC) that was exploited by some companies in the forest-products industry beginning in 2005. The intention of Congress in creating the Alternative Fuel Mixture Credit and the tax credit that preceded it, the alcohol motor fuel tax credit, was to create incentives for the industry to create liquid motor fuels out of biomass. The so-called black liquor tax credit was a tax loophole in the Alternative Fuel Mixture Credit (AFMC) that was exploited by some companies in the forest-products industry beginning in 2005. Whether intentionally or not, the AFMC allowed the tax credit to be claimed by companies that were already using biofuel, that by-product of wood pulp production, but could add in some conventional fuel to be eligible for the credit. Black liquor is the biomass by-product of wood pulp production, which is commonly used to power plants and mills.﻿﻿ The mixture, which the industry called an alternative fuel source, qualified under the rules of the credit, although in practice, it was the exact opposite process the credit was intended to promote.

Black Liquor Tax Credit

Business expenses are costs incurred in the ordinary course of business. Business expenses are deductible and are always netted against business income.

Publication 535 (2018), Business Expenses

Publication 946 (2018), How To Depreciate Property

Business expenses are costs incurred in the ordinary course of business. Some business expenses may be fully deductible while others are only partially deductible.﻿﻿ Below are some examples of allowable, fully deductible expenses:
Advertising and marketing expenses
Credit card processing fees
Education and training expenses for employees
Certain legal fees
License and regulatory fees
Wages paid to contract employees
Employee benefits programs
Equipment rentals
Insurance costs
Interest paid
Office expenses and supplies
Maintenance and repair costs
Office lease
Utility expenses Necessary means that the expenses help in doing business are appropriate and a business owner might not be able to handle the business if they did not make the expenditure. Entities will typically have three categories of expenses which are broken down by direct costs, indirect costs, and interest on the income statement. On the income statement, business expenses are subtracted from revenue to arrive at a company’s taxable net income.

Business Expenses

Capital loss carryover is the amount of capital losses a person or business can take into future tax years.

Publication 550: Investment Income and Expenses

Capital loss carryover is the net amount of capital losses eligible to be carried forward into future tax years. Depending on how much loss is harvested, losses can be carried over to offset gains in future years.﻿﻿ Tax-loss harvesting often occurs in December, with December 31 being the last day to realize a capital loss. Net capital losses (the amount that total capital losses exceed total capital gains) can only be deducted up to a maximum of $3,000 in a tax year. If the ABC Corp stock was sold on or prior to December 31, the investor would realize $1,000 ($10,000 gains - $9,000 ABC Corp loss) in capital gains. After the $10,000 capital gain offset and the $3,000 ordinary income offset, the investor would have $7,000 of capital losses to carry forward into future years.

Capital Loss Carryover

Casualty and theft losses are deductible losses stemming from the loss or destruction of a taxpayer's personal property.

Publication 5307: Tax Reform Basics for Individuals and Families

New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC) Changes for 2018 and after

Publication 547: Casualties, Disasters, and Thefts

Casualty and theft losses are deductible losses that arise from the destruction or loss of a taxpayer's personal property. Taxpayers' ability to claim casualty and theft losses were restricted for federal taxes by the Tax Cuts and Jobs Act of 2017.﻿﻿ Some states, like New York, decoupled their deductions from the IRS after 2017, so taxpayers may still be able to deduct casualty and theft losses at the state level in some states. Events listed by the IRS that are deductible if the loss occurred during a declared federal disaster include (in alphabetic order):
Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster
Mine cave-ins
Sonic booms
Storms, including hurricanes and tornadoes
Terrorist attacks
Volcanic eruptions
Take note that this deduction only applies to the owner of the property. After the Tax Cuts and Jobs Act of 2017, federal taxpayers can only deduct casualty and theft that are the result of a federal disaster as declared by the President of the United States. Some states have decoupled their tax deductions from the federal government and will honor casualty and theft deductions that are not the result of declared federal disasters.

Casualty and Theft Losses

A charitable donation is a gift of cash or property to a non-profit organization. American taxpayers can deduct such donations up to an annual cap.

A charitable donation is a gift of cash or property made to a nonprofit organization to help it accomplish its goals for which the donor receives nothing of value in return. If items such as works of art or investments that have appreciated in value are being donated, there may additional rules that must be followed for deducting the donation.
Noncash property donations that are worth more than $5,000 will require an appraisal of the property that affirms its value. As noted, U.S. taxpayers normally may deduct up to 60% of their adjusted gross incomes (and up to 100% of AGI under the CARES Act for 2020), but the Internal Revenue Service (IRS) has certain rules restricting the types of donations that can be made and the types of organizations that can receive them. A charitable donation is a gift of cash or property made to a nonprofit organization to help it accomplish its goals for which the donor receives nothing of value in return. Taxpayers deducting more than $300 in charitable contributions must use Form 1040 or 1040-SR form and itemize their deductible contributions on a Schedule A form.

Charitable Donation

Child and dependent care credit is a nonrefundable tax credit for unreimbursed childcare expenses paid by working taxpayers.

Credit for Child and Dependent Care Expenses

Topic No. 602 Child and Dependent Care Credit

Publication 503: Child and Dependent Care Expenses

Looking Ahead: How the American Rescue Plan Affects 2021 Taxes, Part 1

The Child and Dependent Care Credit is a nonrefundable tax credit offered to taxpayers who pay out-of-pocket expenses for childcare. The IRS allows parents to claim a fairly wide range of expenses, including those for:
Babysitters, as well as housekeepers, cooks, and maids who take care of the child
Day camps and summer camps (overnight camps are not eligible)
Before- and after-school programs
Nurses and aides who provide care for a dependent who is disabled
Nursery school or preschool A tax filer may be able to claim the child and dependent care credit if they paid someone to care for a child under the age of 13. The custodial parent is the one eligible to take the child and dependent care credit, whether or not the other parent claims the child (or children) as a dependent on their tax return. However, because the child and dependent care credit is a nonrefundable credit, it has no value if you do not owe any income tax for the year.

Child and Dependent Care Credit

This $2,000-per-child credit covers children under 17; $1,400 is refundable. In 2021, it's $3,000 for under 18s ($3,600 under 6) and fully refundable.

An Expanded Child Tax Credit Would Lift Millions of Children Out of Poverty

2021 Child Tax Credit and Advance Child Tax Credit Payments--Topic A: General Information

Publication 972 (2020): Child Tax Credit and Credit for Other Dependents

Tax Changes in the Consolidated Appropriations Act, Earned Income Tax Credit/Child Tax Credit Relief.

The American Rescue Plan Act of 2021 (H.R. 1319), Section-by-Section” (as of February 22, 2021)

Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents?

The Potential Poverty Reduction Effect of President-Elect Biden’s Economic Relief Proposal

House COVID Relief Bill Includes Critical Expansions of Child Tax Credit and EITC

Child tax credit expansion sets up showdown with GOP

The child tax credit is a tax benefit granted to American taxpayers for each qualifying dependent child. Taxpayers entitled to claim the child tax credit have been permitted to adjust their income tax withholding and/or calculate their installment tax payments to reflect their allowed credit amounts. The refundable portion of the credit—i.e., the additional child tax credit—was designed to help taxpayers whose tax liabilities were too low to benefit from part or all of the credit. For 2020, the child tax credit is an income tax credit of up to $2,000 per eligible child (under age 17) that may be partially refundable. The child tax credit is a tax benefit granted to American taxpayers for each qualifying dependent child.

Child Tax Credit

The Qualified Retirement Savings Contribution credit is a tax form used to calculate an individual or married couple's saver's credit.

2021 Limitations Adjusted as Provided in Section 415(d), etc

Form 8880: Credit for Qualified Retirement Savings Contributions

About Form 8880, Credit for Qualified Retirement Savings Contributions

Retirement Savings Contributions Credit (Saver's Credit)

The Qualified Retirement Savings Contribution Credit, often abbreviated as the "saver's credit," encourages low-income individuals to contribute to their qualified retirement plans by ultimately reducing their overall tax obligations. Married taxpayers filing jointly may receive a credit worth 20% of their contributions to a qualifying plan or ABLE account if their combined AGI ranges between $39,501 and $43,000. Married taxpayers filing jointly may receive a credit worth 10% of their contributions to a qualifying plan or ABLE account if their combined AGI ranges between $43,001 and $66,000. Married taxpayers filing jointly may receive a credit worth 50% of their contributions to a qualifying plan or ABLE account if their combined AGI is $39,500 or less. As of 2021, the saver's credit is available to single taxpayers with maximum incomes of $33,000, heads of household with maximum incomes of $49,500, and married couples filing jointly with maximum incomes of $66,000.

Qualified Retirement Savings Contribution Credit

For tax purposes, a deductible is an expense that can be subtracted from adjusted gross income in order to reduce the total taxes owed.

IRS provides tax inflation adjustments for tax year 2020

IRS announces tax inflation adjustments for 2021

For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. U.S. individual taxpayers may either use the standard deduction or fill out a list of all of their deductible expenses, depending on which results in a smaller taxable income. For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. Whether a taxpayer uses the standard deduction or itemizes deductible expenses, the amount is subtracted directly from adjusted gross income. A business or self-employed individual must list all of the income that was received and all of the expenses that were paid out in order to report the real profit of the business.

Deductible

A deduction is an expense that a taxpayer can subtract from his or her gross income to reduce the total that is subject to income tax.

Here are five facts about the new Form 1040

About Schedule A (Form 1040), Itemized Deductions

Overview Of The Federal Tax System As In Effect For 2019

IRS provides tax inflation adjustments for tax year 2021

Schedule 1: Additional Income and Adjustments to Income

Be Tax Ready – understanding tax reform changes affecting individuals and families

A deduction is an expense that can be subtracted from a taxpayer's gross income in order to reduce the amount of income that is subject to taxation. If you opt to claim the standard deduction, there are still some itemized deductions you can claim on your income tax return, including eligible student loan interest and tuition and fees. For the 2021 tax year, the standard deduction is set at $12,550 for singles and married people filing separately. In the 2017 tax year, the standard deduction was $6,350 for single filers and $12,700 for married people filing jointly. Taxpayers who itemize deductions must use Schedule A Form 1040, an attachment to the standard 1040 form, and are required to fill in a list of their allowable deductions and keep receipts to prove them if they are audited.

Deduction

Deferred Gain on Sale of Home, repealed in 1997, allowed the deferred tax on gains from the sale of a principal residence.

Publication 523 (1996), Selling Your Home,

A Report to the Senate and House Committees on the Budget,

Publication 523 (2018), Selling Your Home.

Deferred Gain on Sale of Home, repealed in 1997, was a tax law allowing homeowners to defer recognition of capital gains from the sale of a principal residence. At the same time, it also abolished the over-55 home sale exemption which allowed a $125,000 once in a lifetime capital gain exclusion on the sale of a principal residence by taxpayers 55 and over.
The Home-Sale Gain Exclusion rule replaced the rollover rule, and the over-55 home sale exemption. There is an occasion when the Deferred Gain on Sale of Home rule would provide a better tax result than the Home-Sale Gain Exclusion rule. Unlike the old rollover rule, the Home-Sale Gain Exclusion rule does not make taxpayers buy a more expensive replacement residence within a prescribed period. Under the Home-Sale Gain Exclusion rule, the taxpayers are liable for income tax on the excess gains in the year of the sale.

What Is Deferred Gain on Sale of Home?

The dividend tax credit is the amount that a Canadian resident applies against their tax owing on the grossed up portion of dividends received from Canadian corporations.

Box 25 -- Taxable Amount of Eligible Dividends.

What's New for Return of Investment Income (T5).

Line 121: Foreign Interest and Dividends.

The dividend tax credit is the amount that a Canadian resident applies against his or her tax liability on the grossed-up portion of dividends received from Canadian corporations.﻿﻿ The gross-up and the dividend tax credit are applicable to individuals, not corporations.
 Since her effective tax rate is 25%, her tax on this income will be:
\= $575 x 0.25
The federal dividend tax credit as a percentage of taxable dividends is 15.0198% for eligible dividends and 9.0301% for non-eligible dividends.﻿﻿ The dividend tax credit is the amount that a Canadian resident applies against his or her tax liability on the grossed-up portion of dividends received from Canadian corporations.﻿﻿ The gross-up and the dividend tax credit are applicable to individuals, not corporations.
1:13 Dividend tax credits are non-refundable credits that are implemented in an attempt to offset double taxing since dividends are paid to shareholders with a corporation's after-tax profit and the dividends received by shareholders are also taxed. Canadian residents apply for dividend tax credits against tax liabilities on the grossed-up portion of dividends received from Canadian corporations.

Dividend Tax Credit

The earned-income credit (EIC) is a tax credit in the U.S. that benefits certain taxpayers who earn low incomes from work in a particular tax year.

 Earned Income and Earned Income Tax Credit (EITC) Tables

The American Rescue Plan Act of 2021 (H.R. 1319), Section-by-Section

Table of Contents
What Is the Earned-Income Credit? For the 2020 tax year, the limits on the income level, credit amount, and investment income for a single or married taxpayer vary, depending on the number of qualifying dependents in the household, and are shown in the table below:
2020 Earned Income Credit Qualifications
Children or Relatives Claimed
Maximum AGI (Single, Head of Household, or Widowed)
Maximum AGI (Married Filing Jointly)
As shown in the table above, a single filer with no dependents earning less than $15,280 in 2020 is eligible for an earned income tax credit of up to $538. The limits for the EIC are:
No qualifying children: $538
1 qualifying child: $3,584
2 qualifying children: $5,920
3 or more qualifying children: $6,660
Furthermore, the IRS stipulates that in order to qualify for the EITC in the tax year 2020 investment income should not exceed $3,650.
A taxpayer who is married filing separately generally does not qualify for this credit. The earned income credit (EIC), also called the earned income tax credit (EITC), was conceived of as a “work bonus plan” to supplement the wages of low-income workers and help offset the effect of Social Security taxes. Though annual inflation adjustments should increase the 2021 income ceilings, phaseout ranges, and credit limits for all eligible taxpayers, the credit and phaseout rates for taxpayers with no qualifying dependents will increase from 7.65% to 15.3%; the maximum earned income amount for the credit and the phaseout amount will rise to $9,820 and $11,610, respectively.

Earned-Income Credit (EIC)

Education tax credits are available for taxpayers who pay qualified higher education expenses for eligible students, to offset certain education expenses.

What is an Eligible Educational Institution?

The two types of education tax credits are the American opportunity tax credit (AOTC) and the lifetime learning credit. There are two types of education tax credits: the American opportunity tax credit (AOTC) and the lifetime learning credit. To be eligible for the lifetime learning credit, a student must be enrolled in a course to earn education credits or improve job skills at an eligible educational institution for at least one academic period, as determined by the school. The AOTC requires the student to be enrolled at least half time for an academic period, while the lifetime learning credit is available to students enrolled in at least one course for an academic period.

Education Tax Credit

An energy tax credit is given to homeowners who make their homes more energy-efficient by installing energy-efficient improvements. 

Instructions for Form 5695, Residential Energy Credits

Energy Incentives for Individuals: Residential Property Updated Questions and Answers

A residential energy tax credit is available to homeowners who make their homes more energy-efficient by installing certain equipment. The energy tax credit could be worth up to 30 percent of the total cost of installing certain renewable energy sources.﻿﻿ In particular, solar equipment was set to be one of the biggest energy tax credits available in 2018. It also reinstated the residential energy efficient property credit for qualified small wind energy property costs, qualified geothermal heat pump property costs and qualified fuel cell property costs to the end of 2021. 2:32
The residential energy tax credit is available for taxpayers through Internal Revenue Service Form 5695.﻿﻿ The Bipartisan Budget Act of 2018 (BBA) signed into law on February 9, 2018 reinstated the nonbusiness energy property credit for 2017. A tax credit is more valuable than an equivalent deduction because a credit reduces the tax dollar-for-dollar, whereas a deduction only removes a percentage of the tax liability.

Energy Tax Credit

An exemption is a deduction allowed by law to reduce the amount of income that would otherwise be taxed. Read about personal and dependent exemptions.

Policy Basics: Tax Exemptions, Deductions, and Credits

Publication 501: Exemptions, Standard Deduction, and Filing Information

Six Important Facts about Dependents and Exemptions

What’s new with the child tax credit after tax reform

The American Rescue Plan Passed – Now What?

Topic No. 753 Form W-4 – Employee's Withholding Allowance Certificate

About Form W-4, Employee's Withholding Certificate

Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans

New Exclusion of up to $10,200 of Unemployment Compensation

Table of Contents
What Is an Exemption? However, if that person earned over a certain threshold, the amount of the exemption would have been phased out and eventually eliminated.
Tax filers were only able to claim a personal exemption if that person was not claimed as a dependent on someone else's income tax return.﻿﻿ This rule intentionally set exemptions apart from deductions. The Bottom Line
An exemption is a deduction allowed by law that reduces the amount of income that is subject to income tax.﻿﻿ The Internal Revenue Service (IRS) previously offered two types of exemptions: personal and dependent exemptions. In most cases, tax filers could also claim a personal deduction for a spouse, as long as the spouse was not claimed as a dependent on another person's tax return. Certain income, such as income made from municipal bonds or unemployment income, and charitable gifts also count as types of exempted income.

Exemption

The federal first-time homebuyer tax credit was ended in 2010 but there are other state and federal programs designed to encourage homeownership.

First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years

Topic No. 611 Repayment of the First-Time Homebuyer Credit

The federal first-time homebuyer tax credit was available to Americans purchasing their first homes from April 2008 through September 2010. The first-time homebuyer tax credit allowed a tax credit for a percentage of the purchase price of a home for taxpayers who had not owned their homes in the previous three years. If required to repay the first-time homebuyer credit, you must file a federal income tax return, even if the gross income doesn't exceed the return filing threshold. The tax credit was a simple way for the government to offset closing costs and moving costs to get first-time homebuyers into a home without increasing the risk to either the homebuyer or the mortgage lender. If you dispose of the home or if you (and your spouse if married) stopped using it as your principal residence in 2020, you must attach a completed Form 5405 for you (and your spouse if married) to Form 1040 or Form 1040-SR.
This information should be added because many individuals do not file when their income falls below the threshold for the tax year.

First-Time Homebuyer Tax Credit

The foreign housing exclusion and deduction is an allowance for taxpayers who live and work in a foreign country.

The foreign housing exclusion and deduction is an allowance for taxpayers who live and work in a foreign country to exclude any amount that their employer allocates to them to cover costs related to housing. The foreign housing deduction cannot be more than their foreign earned income less the total of their foreign earned income exclusion, plus their housing exclusion. Also, the housing exclusion applies only to amounts considered paid for with the amounts provided by the employer, which include any amounts paid to the individual or paid or incurred on their behalf by their employer that are considered taxable foreign earned income. The limit on housing expenses is generally 30 percent of the maximum foreign earned income exclusion, but it may vary depending upon the location in which you incur housing expenses. The limit on housing expenses varies depending upon the location in which you incur housing expenses.﻿﻿ ﻿﻿ The limit on housing expenses is computed using the worksheet on page 3 of

Foreign Housing Exclusion And Deduction

The foreign tax credit is a nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings.

Foreign Taxes that Qualify for the Foreign Tax Credit

Publication 514 (2020), Foreign Tax Credit for Individuals.

Choosing the Foreign Earned Income Exclusion.

The foreign tax credit is a nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. A taxpayer is _not_ eligible for a foreign tax credit if they did not pay or accrue the tax, the tax was not imposed on the taxpayer, the tax is not a legal and actual foreign tax liability, or the tax is not based on income. The foreign tax credit is a nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. Though some or all of the foreign earned income can be excluded from federal income tax, a taxpayer cannot claim both foreign earned income and foreign tax credit exclusions on the same income. Though some or all of the foreign earned income can be excluded from federal income tax, a taxpayer cannot claim both foreign earned income and foreign tax credit exclusions on the same income.

Foreign Tax Credit

The foreign tax deduction reduces taxable income by a portion paid by American taxpayers to foreign taxation, and stands in for the foreign tax credit.

Publication 514: Foreign Tax Credit for Individuals

Foreign Tax Credit - Choosing To Take Credit or Deduction

The foreign tax deduction is one of the itemized deductions that may be taken by American taxpayers to account for taxes already paid to a foreign government, and are typically classified as withholding tax. The foreign tax deduction may be more advantageous if the foreign tax rate is high and only a small amount of foreign income relative to domestic income has been received. The foreign tax deduction is usually taken in lieu of the more common foreign tax credit if the deduction is more advantageous to the taxpayer than the credit. The foreign tax deduction allows American taxpayers to reduce their taxable income by a portion of the amount of income tax paid to foreign governments. The foreign tax credit is applied to the amount of tax owed by the taxpayer after all deductions are made from his or her taxable income, and it reduces the total tax bill of an individual dollar to dollar.

Foreign Tax Deduction

Form 1045: Application for Tentative Refund is an IRS form for claiming a quick refund. It can be filed by individuals, trusts, or estates for certain business losses.

IRS Issues Guidance on Changes to Excess Business and Net Operating Losses

About Form 1045, Application for Tentative Refund

Form 1045: Application for Tentative Refund is an Internal Revenue Service (IRS) form used by individuals, estates, and trusts to apply for a quick tax refund. According to the instructions for Form 1045, the basis for the refund request must be for one of four reasons:
The carryback of a net operating loss (NOL)
The carryback of an unused general business credit
The carryback of a net section 1256 contracts loss
An overpayment of tax due to a claim of right adjustment under section 1341(b)(1)
The instructions for Form 1045 spell out what qualifies as a loss.
As a result of the Tax Cuts and Jobs Act (TCJA), most taxpayers can now only carry net operating losses (NOLs) arising from tax years after 2017 to a later year. A party that wants a fast refund but isn’t concerned about having the refund corrected later will file Form 1045, while a party that wants accuracy and can wait for the correct refund will file either Form 1040X (individuals) or Form 1041 (estate or trust). Individuals, estates, and trusts can file Form 1045: Application for Tentative Refund instead of using Form 1040-X for individuals or using Form 1041 for estates or trusts. While Form 1045 is filed separately from the taxpayer's main tax return, it should include the first two pages of Form 1040, any Form 4952, and all Schedules K-1.

Form 1045: Application for Tentative Refund

Form 2106-EZ was a tax form distributed by the Internal Revenue Service and used by employees to deduct ordinary and necessary expenses related to their jobs.

About Form 2106-EZ, Unreimbursed Employee Business Expenses

Foreign Per Diem Rates by Location–DSSR 925

FY 2020 Per Diem Rates for Aspen, Colorado

Form 2106-EZ–Unreimbursed Employee Business Expenses

IRS issues standard mileage rate for 2021

Form 2106-EZ: Unreimbursed Employee Business Expenses was a tax form issued by the Internal Revenue Service (IRS) for use by employees who wished to deduct ordinary and necessary expenses related to their jobs. Form 2106-EZ: Unreimbursed Employee Business Expenses was a tax form issued by the Internal Revenue Service (IRS) for use by employees who wished to deduct ordinary and necessary expenses related to their jobs. In Part I, employees were required to list all unreimbursed business expenses, such as airfare, lodging, parking, tolls, and car rental, as well as any personal vehicle expenses from Part II. Form 2106-EZ was used by employees to deduct job-related expenses, including meals, hotels, airfare, and vehicle expenses. Form 2106-EZ was a simplified version of Form 2106 and was used by employees who were claiming a tax deduction because of unreimbursed expenses related to their jobs.

Form 2106-EZ: Unreimbursed Employee Business Expenses

Form 3903: Moving Expenses is a tax form distributed by the Internal Revenue Service (IRS) and used by taxpayers to deduct moving expenses related to taking a new job.

Form 3903 is a tax form created by the Internal Revenue Service (IRS) and used by taxpayers to deduct moving expenses related to a new job. For tax years prior to 2018, Form 3903 was used for each qualifying move a taxpayer made in a tax year, which meant those with multiple job-related moves were required to fill out multiple forms. Form 3903 is a tax form created by the Internal Revenue Service (IRS) and used by taxpayers to deduct moving expenses related to a new job. Qualifying expenses included:
The cost of boxes, tape, moving blankets, bubble wrap, and other packing necessities
Rental fees for moving trucks and storage units
Travel costs, including plane fare, gas or mileage, and hotel costs
The costs of moving other family members in a separate vehicle If you didn't rack up 39 weeks at the new job before the filing deadline, you were still able to file Form 3903 if you expected to pass the time test in your first year of employment.

Form 3903: Moving Expenses

Form 4684: Casualties and Thefts is an IRS form to report gains or losses from casualties and theft which may be deductible and reduce taxable income.

Instructions for Form 4684: Casualties and Thefts

Form 4684 is an Internal Revenue Service (IRS) form for reporting gains or losses from casualties and thefts which may be deductible for taxpayers who itemize deductions. Although casualty losses are usually deductible only in the tax year in which those losses happen, special provisions exist for qualified disaster losses. Internal Revenue Service (IRS) form for reporting gains or losses from casualties and thefts that occurred because of a federally declared disaster and which may be deductible for taxpayers who itemize deductions. To deduct federally declared disaster losses for the preceding tax year, complete Section D of Form 4684. Form 4684 is an Internal Revenue Service (IRS) form for reporting gains or losses from casualties and thefts which may be deductible for taxpayers who itemize deductions.

Form 4684: Casualties and Thefts

Form 4952 is an IRS tax form determining the investment interest expense that may be either deducted or carried forward to a future tax year.

About Form 4952, Investment Interest Expense Deduction

Form 4952: Investment Interest Expense Deduction is a tax form distributed by the Internal Revenue Service (IRS) used to determine the amount of investment interest expense that can be deducted, as well as any interest expense that can be carried forward to a future tax year. According to the IRS, the following instances serve as exceptions to filing the form:
If the investment interest expense is less than your investment income from interest and ordinary dividends minus any qualified dividends.
If you don't have any other deductible investment expense.
There is no carryover of disallowed investment interest expense from the previous year. Form 4952: Investment Interest Expense Deduction is a tax form distributed by the Internal Revenue Service (IRS) used to determine the amount of investment interest expense that can be deducted, as well as any interest expense that can be carried forward to a future tax year. IRS Form 4952 determines the amount of deductible investment interest expense as well as interest expense that can be carried forward. The IRS limits the investment interest expense deduction to the taxpayer's net income from an investment.

Form 4952: Investment Interest Expense Deduction

Form 5405 is an IRS tax form filed by homeowners to claim a tax credit for a primary residence purchased between 2008 and 2010. 

Form 5405: First-Time Homebuyer Credit and Repayment of the Credit is a tax form distributed by the Internal Revenue Service (IRS). Qualified homebuyers who purchased a qualified home but did not claim the tax credit on their 2009 returns were encouraged to file an amended 1040-X return with Form 5405 attached to claim their credit. Taxpayers must file the new Form 5405 with their 2019 tax return if they purchased the home in 2008 and meet either of the following conditions:
The property was disposed of in 2020.
The taxpayer ceased using it as their main home in 2020. Taxpayers used it to claim a tax credit for a percentage of the purchase price of a new home. It was used by homeowners to claim a now-defunct tax credit for the purchase of a new or replacement home between April 9, 2008, through Sept. 30, 2010.

Tax Deductions and Credits

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