F1 Non refundable Persoanl tax credit

Question 1

What are non refundable tax credits

Answer 1

They are those that decrease personal tax liability to zero but will never result in a refund.

Question 2

Child and dependent care credit

Answer 2

The amount eligible for the credit is the lesser of
A. The earned income of the lessor-earning spouse
B. The actual expense incurred
C. The maximum allowable amount 3,000 for one kid 6,000 for two or more

Then you would multiply this by the care credit rate %

Question 3

American opportunity credit

Answer 3

Maximum credit 2,500 (60% is not refundable)
100% of the first $2,000 qualified expenses
25% of the next $2,000 of qualified expenses

Question 4

Lifetime learning credit

Answer 4

20% of the qualified expenses up to $10,000

Limit of AGI id 80,000 single and 160,000 MFJ
Fully phased out 90,000 and 180,000 MFJ

Question 5

Coverdell education savings account

Answer 5

Maximum contributions of 2,000 per year per beneficiary
The child must be 18 or less (No limit to the amount of children)

Phase out range
Unmarried 95k - 110k
Married 190k - 220k

Question 6

Credit for elderly and or permanently disabled

Answer 6

15% of eligible income available to
65 or older
under 65 but retired because of total and permanent disability

5,000 for singel
5,000 for MFJ but only one spouse qualifies
7,500 for MFJ and both qualify
3,750 for MFS

Question 7

Credit for elderly and or permanently disabled calculation

Answer 7

Any amount over AGI bellow is multiplied by 50% and used as a deduction to the credit

Single 7,500
MFJ 10,000
MFS 5,000

Starting credit
-Social security
-1/2 of excess AGI
*15%