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Credits

Earned Income Tax Credit Materials
The EITC is a tax credit for certain people who work and have an earned income under certain thresholds. A tax credit usually means more money in the pocket of those who qualify. Income and family size determine the amount of the EITC.

Advanced Earned Income Tax Credit (EITC) Materials - Legislation signed into law August 10, 2010, repeals the Advanced Earned Income Tax Credit. Recipients will not receive Advance EITC on their paychecks after December 31, 2010.

Health Coverage Tax Credit (HCTC)
The Health Coverage Tax Credit (HCTC) is a program that can help pay for nearly two-thirds of eligible individuals' health plan premiums. This website can help you figure out whether you are eligible for the HCTC and help you through the registration process. Please follow all instructions carefully so you and your family can receive the full benefit of this program.

Child Tax Credit
This credit is for people who have a qualifying child. It can be claimed in addition to the credit for child and dependent care expenses (see below). For more information on the Child Tax Credit, see Publication 972, Child Tax Credit.

Child and Dependent Care Credit
This is for expenses paid for the care of children under age 13, or for a disabled spouse or dependent, to enable the taxpayer to work. There is a limit to the amount of qualifying expenses. The credit is a percentage of those qualifying expenses. For more information, see Publication 503, Child and Dependent Care Expenses.

Education Credits
 There are two credits available, the American Opportunity Credit and the Lifetime Learning Credit, for people who pay higher education costs. The American Opportunity Credit is for the payment of the first four years of tuition and related expenses for an eligible student for whom the taxpayer claims an exemption on the tax return. The Lifetime Learning Credit is available for all post-secondary education for an unlimited number of years. A taxpayer cannot claim both credits for the same student in one year. For more information, see Publication 970, Tax Benefits for Education.

Retirement Savings Contribution Credit
Eligible individuals may be able to claim a credit for a percentage of their qualified retirement savings contributions, such as contributions to a traditional or Roth IRA or salary reduction contributions to a SEP or SIMPLE plan. To be eligible, you must be at least age 18 at the end of the year and not a student or an individual for whom someone else claims a dependency exemption. Also, your adjusted gross income must be below a certain amount. For more information, see Chapter Four in Publication 590, Individual Retirement Arrangements (IRAs).

Page Last Reviewed or Updated: 28-Mar-2014