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Unformatted text preview: Additional Credits Code Purpose 21 Credit for child and dependent care expenses – to help offset costs incurred for the care of certain individuals necessitated to enable a taxpayer to work outside the home. 22 Credit for the elderly or disabled – to provide tax relief for those who do not receive substantial benefits from tax-free Social Security payments. 23 Adoption expenses credit – to assist taxpayers who incur nonrecurring costs directly associated with the adoption process. 24 Child tax credit – to provide tax relief for low-to-moderate income families with children under age 17. In certain cases, this credit is refundable. 25 Credit for certain mortgage interest paid – to reduce the cost of acquiring a home for qualified first-time home buyers. 25A Education tax credits – to help defray the cost of the first two years of higher education for low-to-middle income families (HOPE scholarship credit), and to help defray the cost of higher education beyond the first two years and costs incurred in maintaining or improving existing job skills for low-to-middle income taxpayers (lifetime learning credit). 25B Credit for certain retirement plan contributions – to encourage contributions to qualified retirement plans by individuals. 25C Credit for nonbusiness energy property – to encourage individuals to make energy saving improvements to their homes. The available nonrefundable credit over a taxpayer’s lifetime cannot exceed $500. 25D Credit for residential energy efficient property – to encourage the purchase of qualifying residential energy efficient property placed in service after December 31, 2005 and prior to January 1, 2017. 27 Foreign tax credit—to mitigate double taxation of income earned in foreign countries....
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- Fall '08
- Taxation in the United States, tax credit, child tax credit