Intermediate Credits

Maximum Eligible expenses for CDCC

3,000 for one qualifying individual, 6,000 for two or more Expenses do not have to be evenly distributed

Residential Energy Efficiency Property (REEP) credit

30% of cost of property plus installation Nonrefundable Solar, small wind, geothermal, natural gas, propane or oil furnaces

Retirement Saving Contribution Credit

Nonrefundable credit for Voluntary contributions to eligible retirement savings account Up to $1000 per tp, $2000 for MFJ Form 8880

Amount of tp's contributions...

is reduced by distributions in the previous two years, current year and period following credit year return

CTC - Reduction for AGI above threshold

$50 for ever $1000 of income

LLC Phaseout

$54,000 MFJ $108,000

ACTC based on income

15% of earned income over $3,000 CANNOT exceed CTC amount

AOC Phaseout

$90,000 or $180,000 for MFJ

Eligible taxpayers for RSCC

At least 18 May NOT be full-time student Cannot be claimed as a dependent

Nonbusiness Energy Property Credit (NEPC)

10% of cost of energy improvements Insulation, Exterior Windows, Doors, Metal Roofs Lifetime limit of $500

AOC Credit Amount

100% of first $2000 25% of second $2000 40% refundable

Qualified Expenses for AC

Adoption fees Court costs Attorney fees Travel Expenses (including meals and lodging) Re-adoption expenses for foreign child

Foreign adoption finalized in US

Adoption order or decree must be retained

ACTC based on 3 or more qualifying children

After calculating 15%, still does not get max credit Can qualify if SS and Medicare taxes exceed EIC

AOC Qualified Explenses

Also include course-related books, supplies and equipment

Education Credits

American Opportunity Credit and Lifetime Learning Credit May be limited by tax MAGI and tax liability MFS tp's DO NOT qualify for either credit Form 8863

EITC Requirements for tp's with no qualifying children

At least 25, buy younger than 65 Cannot be dependent, includes spouse if married Must live in US for more than half the year: 50 states and DC only

CDCC credit amount

Based on percentage of earned income Full-time student or disabled ind deemed to earn $250 per month for purposes of this credit Ranges from 35% to 20% with no phaseout

Phaseout

Between $197,880 and $237,880

Lifetime Learning Credit Expenses

Books, supplies and equipment ONLY when expenses must be paid directly to institution as condition of enrol

If child turns 13 during tax year..

Can claim care expenses incurred before birthday

Qualifying Individual Req for CDCC

Child under Age 13 Spouse unable to care for self and lives with the tp more than half the year Individual of any age who is unable to care for self, lives with tp more than half the year, and is tp's dependent

EITC Due Diligence Requirements

Completion of Form 8867 or equivalent Computation of credit Knowledge Record Retention: 8867 and EITC worksheet for 3 years after June 30th

Lifetime Learning Credit

Courses do not have to lead to degree or cert Do not need to be enrolled at least half time 20% of eligible expenses up to $10,000

Plug in Electric Vehicle Credit

Credit for purchase of qualified vehicle Manufacturer's certification

Home purchased between April 8, 2008 and January 1, 2009

Credit must be paid back in 15 equal installments

IRS has right to request copy of documentation. Qualifying documents:

Decree of Adoption (if final) ATIN for child Home study Placement agreement Hospital authorizing release of newborn Court - placement

To qualify for D or S parent exception

Decree, written separation agreement, or lived apart for last 6 months Parent's together provide more than 1/2 of support Total time in parental custody must be > 1/2 year Form 8332 must be filled out

Additional CTC Requirements

Earned income >$3,000 OR 3 or more qualifying children

Eligible Institution

Eligible to participate in Financial Aid Program administered by DOE

TP's who paid care-related expenses are eligible for Child and Dependent care credit if they are:

Employed Self-Employed Actively searching for employment Full-time student

Eligible expenses for CDCC

Employment-related and for the care of qualifying individual Education or transportation expenses do not qualify

Non-Qualified Expenses for AC

Fees paid to adopt a spouses child Payments for surrogate parenting Payments for activities in violation of law Reimbursed expenses

Foreign, but not Hague docs

Foreign adoption decree IR-2 or IR-3 Visa

Foreign adoption covered by Hague Convention docs

Hague Adoption Certificate IH3-Visa Foreign Adoption decree, translated into english

Homebuyer's Credit

Homes purchased between April 9, 2008 and April 30, 2010

Divorced or Separated Parent Exception

If custodial parent releases claim to exemption: Noncustodial parent can claim dependency and CTC Custodial parent can still claim HH, EITC and CDCC

CTC - Phaseout Thresholds (Modified AGI)

MFS $55,00 S, HH, QW $75,000 MFJ $110,000

Adoption Credit

Maximum for 2014 is $1390 MFS not eligible Form 8839 used to calculate credit Can carryover for up to 5 yrs

Taxpayer with child or dependent care FSA

May direct up to $5000 from both employer and employee funds TP who uses funds from FSA for care expenses MAY NOT claim those funds for CDCC

If EITC disallowed because of fraud..

May not claim EITC for net ten tax years

If EITC disallowed..

May not claim EITC for next two tax years

Special needs child - Ac amount

May take up to maximum credit regardless of expenses

TP with previous dis-allowance of EITC

Must file form 8862: Information to Claim Earned Income Credit after disallowance Unless disallowance was due to a qualifying child and new EITC claim does not include that chile

For daycare provider..

Must supply EIN or SSN

For married tp's claiming CDCC, each must meet one requirement

Neither spouse can be stay-at-home, unless incapable of self-care

Eligibility Period of Expenses

See chart

Employer-Provided Adoption Benefits

Shown in box 12 or W-2 Excluded from taxable income Maximum exclusion is the same as the adoption credit

Qualified Expenses

Student Loans - paid by individual responsible for repaying Tuition and fees for course(s) taken during year and following 3 months

If adoption expenses extend over more than two years,

Subtract credit taken in previous years from maximum

If two unmarried tp's pay qualifying expenses to adopt a child..

They can divide the credit any way they choose

Other Tax Benefits for Education

Tuition and Fees Deduction Schedule A - Unreimbursed Business Expenses

Three requirements for special needs child:

US Citizen or Resident State agency - ineligible to return to parental custody State agency - child will not be adopted unless additional assistance is provided.

Earned Income Tax Credit (EITC) Requirements

US Citizen or Resident all year SSN's File a tax return Have earned income Have less than 3350 of investment income

Eligible child for AC

Under 18 OR Adult but unable to provide self-care

CTC - Qualifying Child: Additional Requirements

Under age 17 US Citizen, National or Resident (NOT Canada or Mex)

Non-special needs child - AC amount

Up to expenses or maximum credit

CDCC expense are eligible in..

Year paid.

Amount of RSCC is...

a percentage of taxpayers contribution based on status and modified AGI

Contributions to IRA's

can be made up to filing date Can be used to increase saver's credit

After December 31, 2008 HBC must be repaid...

if house is no longer principal residence for three years after credit taken, and sold at a gain Exception for military members required to relocate