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Common Tax Credits
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Flashcards
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American Opportunity Tax Credit (AOTC)
A partially refundable tax credit for undergraduate college education expenses.
Lifetime Learning Credit (LLC)
A non-refundable tax credit for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.
Renewable Electricity Production Tax Credit (PTC)
A per-kilowatt-hour tax credit for generating electricity from qualified renewable sources, such as wind or biomass.
Adoption Tax Credit
A non-refundable tax credit for qualified adoption expenses paid to adopt an eligible child.
Saver's Credit
A non-refundable tax credit for eligible contributions to employer-sponsored retirement plans or individual retirement arrangements (IRAs).
Child and Dependent Care Credit
A non-refundable tax credit for incurred expenses related to the care of children under 13 or disabled dependents while working or looking for work.
Adoption Credit
A tax credit like the Adoption Tax Credit, specifically for the costs associated with the legal adoption of a child.
Low-Income Housing Tax Credit (LIHTC)
A credit for developers of affordable housing in low-income communities.
Health Coverage Tax Credit
A refundable tax credit that pays a significant portion of qualified health insurance premiums for eligible individuals and their families.
Mortgage Interest Credit
A tax credit for certain homeowners who receive a Mortgage Credit Certificate (MCC) from their state or local government.
Historic Preservation Tax Credit
A credit to encourage the preservation and rehabilitation of historic and old buildings.
Foreign Tax Credit
A non-refundable tax credit that reduces the double tax burden for taxpayers earning income outside the United States.
Residential Energy Efficient Property Credit
A tax credit for homeowners who install qualifying energy-saving improvements to their home, such as solar, wind, or geothermal energy systems.
Electric Vehicle Tax Credit
A credit for taxpayers who purchase a new qualifying electric vehicle, also known as the plug-in electric drive motor vehicle credit.
Work Opportunity Tax Credit (WOTC)
A credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.
Education Credits
General term for tax credits that reduce education costs, such as the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).
Earned Income Tax Credit (EITC)
A refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children.
Energy Investment Tax Credit (ITC)
A tax credit for certain energy-efficient investments, including solar, wind, and geothermal systems.
Child Tax Credit (CTC)
A non-refundable credit that provides financial relief to taxpayers for each qualifying dependent child.
New Markets Tax Credit
A credit given to investors for qualified equity investments in designated Community Development Entities (CDEs), aimed at revitalizing low-income communities.
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