Earned Income Credits
Education Credits Forms: 1098-T and 1098-E
America Opportunity and Lifetime Learning Credit
CHILD TAX CREDITS
Qualifying Child for the CTC A child qualifies you for the CTC if the child meets all of the following conditions.
- The child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
- The child was under age 17 at the end of 2022.
- The child didn’t provide over half of his or her own support for 2020.
- The child lived with you for more than half of 2022.
- The child is claimed as a dependent on your return.
- The child doesn’t file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).
- The child was a U.S. citizen, U.S. national, or U.S. resident alien.
Your Child must have the required SSN. The required SSN is one that is valid for employment and that is issued by the Social Security Administration before the due date of your 2022 return.
Timely Issued TIN In addition to being a qualifying person for the ODC, the person must have an SSN, ITIN, or ATIN issued to the dependent on or before the due date of your 2022 return (including extensions). If the person has not been issued an SSN, ITIN, or ATIN by that date, you can’t use the person to claim the ODC.
Qualifying Person for the ODC A person qualifies you for the ODC if the person meets all of the following conditions:
- The person is claimed as a dependent on your return.
- The person can’t be used by you to claim the CTC or ACTC.
- The person was a U.S. citizen, U.S. national, or U.S. resident alien.
Additional Child Tax Credit:
The Child Tax Credit:
ERNING INCOME CREDIT (EITC) 2020.
What taxpayers need to know to claim the earned income tax credit The erned income tax credit can give qualifying workers with low-to-moderate income a substantial financial boost. In 2022,
Your Child Must Meet Your child is a qualifying child if your child meets four tests:
1. Relationship, 2.Age, 3.Residency, and 4. Joint return.
To qualify for the EITC:
- Have a valid Social Security number
- Meet all 4 tests for a qualifying child
- Not be claimed by more than one person as a qualifying child.
In 2022, to qualify for the EITC, you can use one of the following statuses:
- Married filing jointly
- Head of household
- Qualifying surviving spouse
- Married filing separate.
2022 Income limits:
Earned Income Limits Your earned income must be less than: • $53,057 ($59,187 for married filing jointly.
You have three or more qualifying children who have valid SSNs, • $49,399 ($55,529 for married filing jointly.
You have two qualifying children who have valid SSNs, • $43,492 ($49,622 for married filing jointly.
You have one qualifying child who has a valid SSN, or • $16,480 ($22,610 for married filing jointly.
Additional Child Tax Credit Year: 2021
Credits for Qualifying Children:
The CTC and ACTC are credits for individuals who claim a child as a dependent if the child meets certain conditions. To claim a child for the CTC and ACTC, the child must be your dependent, under age 17 at the end of 2022, and meet all the conditions in Steps 1 through 3 under Who Qualifies as Your Dependent in the Instructions for Form 1040.
Limits on modified adjusted gross income (MAGI).
The lifetime learning credit and the American opportunity credit MAGI limits are $180,000 if you're married filing jointly ($90,000 if you're filing single, head of household, or qualifying surviving spouse).
Form 1098-T requirement.
To be eligible to claim the American opportunity credit or the lifetime learning credit, the law requires a taxpayer (or a dependent) to have received Form 1098-T, Tuition Statement, from an eligible educational institution, whether domestic or foreign.
Who can claim an education credit.
- You, your dependent or a third party pays qualified education expenses for higher education.
- An eligible student must be enrolled at an eligible educational institution.
- The eligible student is yourself, your spouse or a dependent you list on your tax return.
American Opportunity Tax Credit:?
To be eligible for AOTC, the student must:
- Be pursuing a degree or other recognized education credential
- Be enrolled at least half time for at least one academic period* beginning in the tax year
- Not have finished the first four years of higher education at the beginning of the tax year
- Not have claimed the AOTC or the former Hope credit for more than four tax years
- Not have a felony drug conviction at the end of the tax year
Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period.
Lifetime Learning Credit.
Who can claim the LLC?
To claim the LLC, you must meet all three of the following:
- You, your dependent or a third party pay qualified education expenses for higher education.
- You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution.
- The eligible student is yourself, your spouse or a dependent you listed on your tax return.