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Tax Credits (Individuals) - REG CPA Exam
Saved Groups
List the nonrefundable personal tax - Child and dependent care credit
credits - Elderly and permanently disabled credit
- Education credits (lifetime learning and American
opportunity credit)
- Retirement savings contribution credit
- Foreign tax credit
- General business credit
- Adoption credit
What percentage of the American 60%
opportunity credit is nonrefundable?
List the types of refundable credits - Child tax credit
- Earned income credit
- Federal income tax withheld (Form W-2)
- Excess social security tax paid
- American opportunity credit (40% refundable)
What is the 2020 maximum - one: $3,000
expenditure allowed for the child - two or more: $6,000
and dependent care credit when you
have one dependent? Two or more
dependents?
, What amount is eligible for the child The lesser of...
and dependent care credit? 1. the earned income of the lesser-earning spouse
2. the actual expenses incurred
3. the maximum allowable amount ($3,000 or
$6,000)
How is the child and dependent care Qualifying expenses * applicable credit
credit calculated? percentage = amount of credit
What are the applicable percentages Income $15,000 or less: 35%
for the child and dependent care Income over $43,000: 20%
credit? Phase-out 20% to 35%
Who is eligible for credit for the - 65 years or older or
elderly and/or permanently - under 65 and retired due to permanent disability
disabled?
How do you calculate the credit for $5,000
elderly and/or permanently disabled - social security (all)
for a single filer? - (1/2) over $7,500
= Balance
x 15%
= credit
How do you calculate the credit for $7,500
elderly and/or permanently disabled - social security (all)
for a MFJ filer? - (1/2) over $10,000
= Balance
x 15%
= credit
Who is eligible for the American pays for a student's first four years of college
Opportunity Tax Credit? (AOTC)
Tax Credits (Individuals) - REG CPA Exam
Saved Groups
List the nonrefundable personal tax - Child and dependent care credit
credits - Elderly and permanently disabled credit
- Education credits (lifetime learning and American
opportunity credit)
- Retirement savings contribution credit
- Foreign tax credit
- General business credit
- Adoption credit
What percentage of the American 60%
opportunity credit is nonrefundable?
List the types of refundable credits - Child tax credit
- Earned income credit
- Federal income tax withheld (Form W-2)
- Excess social security tax paid
- American opportunity credit (40% refundable)
What is the 2020 maximum - one: $3,000
expenditure allowed for the child - two or more: $6,000
and dependent care credit when you
have one dependent? Two or more
dependents?
, What amount is eligible for the child The lesser of...
and dependent care credit? 1. the earned income of the lesser-earning spouse
2. the actual expenses incurred
3. the maximum allowable amount ($3,000 or
$6,000)
How is the child and dependent care Qualifying expenses * applicable credit
credit calculated? percentage = amount of credit
What are the applicable percentages Income $15,000 or less: 35%
for the child and dependent care Income over $43,000: 20%
credit? Phase-out 20% to 35%
Who is eligible for credit for the - 65 years or older or
elderly and/or permanently - under 65 and retired due to permanent disability
disabled?
How do you calculate the credit for $5,000
elderly and/or permanently disabled - social security (all)
for a single filer? - (1/2) over $7,500
= Balance
x 15%
= credit
How do you calculate the credit for $7,500
elderly and/or permanently disabled - social security (all)
for a MFJ filer? - (1/2) over $10,000
= Balance
x 15%
= credit
Who is eligible for the American pays for a student's first four years of college
Opportunity Tax Credit? (AOTC)
