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2010 Dependent Care, Education and Child Credits
2010/2011 Tax Rate Guide
2010 Filing Requirements
2010 Tax Deductions and Exemptions
2010 Earned Income Credit
2010 Dependent Care, Education and Child Credits
2010 Miscellaneous Limitations
2010 MACRS Recovery Periods
2010 Annual Financial Planning Limits
| DEPENDENT CARE CREDIT LIMITATIONS |
|---|
| To determine the amount of your credit, multiply your
work-related expenses (after applying the earned income and dollar
limits) by a percentage. This percentage depends on your adjusted gross
income shown on form 1040, line 37, or Form 1040A, line 21. The
following table shows the percentage to use based on adjusted gross
income. The maximum eligible to be multiplied by these percentages is
$3,000 per child, maximum of $6,000 per return. |
| IF YOUR ADJUSTED GROSS INCOME IS: |
THEN THE
PERCENTAGE IS: |
| OVER: |
BUT NOT OVER: |
| $0 |
15,000 |
35% |
| 15,000 |
17,000 |
34% |
| 17,000 |
19,000 |
33% |
| 19,000 |
21,000 |
32% |
| 21,000 |
23,000 |
31% |
| 23,000 |
25,000 |
30% |
| 25,000 |
27,000 |
29% |
| 27,000 |
29,000 |
28% |
| 29,000 |
31,000 |
27% |
| 31,000 |
33,000 |
26% |
| 33,000 |
35,000 |
25% |
| 35,000 |
37,000 |
24% |
| 37,000 |
39,000 |
23% |
| 39,000 |
41,000 |
22% |
| 41,000 |
43,000 |
21% |
| 43,000 |
No limit |
20% |
| COMPARISON OF EDUCATION CREDITS |
|---|
| AMERICAN OPPORTUNITY CREDIT |
LIFETIME LEARNING CREDIT |
| Up to $2,500 |
Up to $2,000 |
100% of the first $2,000 of qualified expenses
25% of the second $2,000 of qualified expenses |
20% of the amount of qualified expenses paid of the first $10,000 |
| Can be claimed for the first 4 years of postsecondary education |
Available for an unlimited number of years- does not vary based on the number of eligible students in the taxpayer's family |
| Student must be enrolled at least half time for at least one academic period beginning during the year |
Eligible if student is enrolled in one or more courses at a qualified educational institution |
| Must be pursuing an undergraduate degree or other recognized educational credential |
Student does not need to be pursuing a degree or other recognized educational credential |
| No felony drug conviction on student's record |
Felony drug conviction rule does not apply |
| 40% of the credit is refundable |
|
Note: If a student attended an educational institution located in a Midwest disaster area, they can choose to claim the Hope credit under the previous rules (ie. 2008 rules), but then they must use the previouse rules for all the students for whom you claim the credit. |
| EDUCATIONAL CREDITS |
|---|
| |
AMERICAN |
LIFETIME |
| Married filing jointly |
$180,000 |
$120,000 |
| All other filing statuses |
$90,000 |
$60,000 |
| QUALIFYING CHILD FOR CHILD TAX CREDIT |
|---|
A qualifying child for purposes of the child tax credit must be all
of the following:
- Claimed as your dependent on line 6c of Form 1040 or Form 1040A.
- Under age 17 at the end of 2009.
- Is your:
- Son, daughter, adopted child, stepchild, or a
descendant of any of them (for example, your grandchild), or
- Brother, sister, stepbrother, stepsister, or a
descendant of any of them (for example, your niece or nephew)
whom you cared for as you would your own child, or
- Foster child (any child placed with you by an
authorized placement agency whom you cared for as you would your
own child).
- A U.S. citizen or resident alien.
Adopted child. An adopted child is always treated as
your own child. An adopted child includes a child placed with you by an
authorized placement agency for legal adoption even if the adoption is
not final.
Kidnapped child. A kidnapped child is treated as a
qualifying child for the child tax credit if both of the following
statements are true:
- The child is presumed by law enforcement authorities to have
been kidnapped by someone who is not a member of your family or the
child's family.
- The child qualified as your dependent for the part of the year
before the kidnapping.
This treatment applies for all years until the child is returned.
However, the last year this treatment can apply is the earlier of:
- The year there is a determination that the child is dead, or
- The year the child would have reached age 16.
|
| ADOPTION CREDIT |
|---|
| Maximum credit for a child with special needs |
$13,170 |
| Other adoptions, qualified expenses |
Up to $13,170 |
| Phaseout range, modified adjusted gross income |
$182,520 - $222,520 |
Note: The Adoption Credit is not available for married couples filing separate returns; therefore, the adjusted gross income does not apply. |
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