Tax Credits Flashcards
What is the max AOTC and # of years
$2,500. 100% of the first $2,000 and 25% of the next $2,000 for 4 years of post-secondary education.
What are qualified expenses and non-qualified expenses for AOTC
Qualified : Tuition, Fees, Books and other required course materials.
Non-Qualified: Room and board, insurance, health fees, transportation, activity fees.
What is the phase out MAGI for AOTC
Single $80,000 to $90,000 and married = $160,000 yto $180,000
How much of the AOTC is refundable. Example : IF the original tax is $1,500, how much is refundable?
40%. $2,500 - $1,500 = $1,000. $1,000 x 40% = $400
Cathy, a single mom, has modified AGI of $86,000. She pays $6,000 in qualified tuition for her daughter’s first semester. What is AOTC
$2,500 x ($90k-$86k)/$10k = $1,000
Which education credit is per student and which is per-taxpayer?
AOTC = Per student, Lifetime learning = Per taxpayer
What is the max credit for Lifetime learning credit
20% of qualified tuition expenses paid per year for any year the AOTC is not claimed for the same student up to $2,000 (20% of $10,000)
Which education credit has unlimited years and which one has a drug related conviction attached.
Lifetime = unlimited years. AOTC = exclusion for drug related charges.
AOTC - Dad claims student as dependent. Dependent pays for school. Who gets to claim the credit
Dad
Schedule 8812
Credits for Qualifying Children and Other Dependents
$2,000 per child under age 17
Qualifying child requirements for 2023
under the age of 17 at the end of the year. 2. be your son, daughter, half-sister, or a descendant of one of these
Provide no more than half of their own financial support during the year
Have lived with you for more than half the year
Be properly claimed as your dependent on your tax return
Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
Have been a U.S. citizen, U.S. national or U.S. resident alien
You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).
Form 2441 (Nero - Rat)
Child and dependent care expenses
What is the maximum Child and dependent care credit
$3,000 for 1 child and $6,000 for 2 or more.
What are the limits for the rate specified by the mortgage credit certificates (MCCs)?
Not less than 10% and not greater than 50%
Which is NOT a test to determine if a child is a qualifying child for the EIC?
Relationship, Age, Residency, or Support
Support. The child must be related by birth or adoption or be an eligible foster child or stepchild, provide residence for 6 months, must be under the age of 19 at the close of the tax year.
