Ch9 outline

Ch9 outline - CH 9 TAX CREDITS CREDIT FOR CHILD AND...

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CH 9 – TAX CREDITS CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES o Credit for the portion of expenses incurred to care for a qualified dependent So that taxpayer can be gainfully employed o Babysitter, housekeeper, cook, nanny, dependent care facility o Qualifying individual: Under age 13 for whom the taxpayer is entitled a dependency deduction Dependent or spouse of taxpayer incapable of taking care of himself o Credit Calculation Percentage of employment-related expenses 20-35% depending on AGI Limited to $3000 (1 qualifying individual), $6000 (2 or more) Further limited to the amount of earned income Limited to taxpayers tax liability Non refundable Full-time student: $250 per month income for mnths in school EDUCATION CREDITS o American Opportunity Tax Credit (AOTC) o Lifetime Learning Credit o Qualifying expenses Amts pd for tuition, fees, other related expenses paid to an eligible education institution while pursuing undergrad, grad, or vocational
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Ch9 outline - CH 9 TAX CREDITS CREDIT FOR CHILD AND...

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