|
2011 Dependent Care, Education and Child Credits
2011/2012 Tax Rate Guide
2011 Filing Requirements
2011 Tax Deductions and Exemptions
2011 Earned Income Credit
2011 Dependent Care, Education and Child Credits
2011 Miscellaneous Limitations
2011 MACRS Recovery Periods
2011 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 |
| Maximum credit |
Up to $2,500 credit per eligible student |
Up to $2,000 credit per return |
| Limit on modified adjusted gross income (MAGI) |
$180,000 if married filing jointly;
$90,000 if single, head of household, or qualifying widow(er) |
$122,000 if married filing jointly;
$61,000 if single, head of household, or qualifying widow(er) |
| Refundable or nonrefundable |
40% of credit may be refundable |
Credit limited to the amount of tax you must pay on your taxable income |
| Number of years of postsecondary education |
Available ONLY for the first 4 uears of postsecondary education |
Available for all years of postsecondary education and for courses to acquire or improve job skills |
| Number of tax years credit available |
Available ONLY for 4 tax years per eligible student |
Available for an unlimited number of years |
| Type of degree required |
Student must be pursuing a degree or other recognized education credential |
Student does not need to be pursuing a degree or other recognized education credential |
| Number of Courses |
Student must be enrolled at least half time for at least one academic period beginning during the tax year |
Available for one or more courses |
| Felony drug conviction |
No felony drug convictions as of the end of the yax year |
Felony drug convictions are permitted |
| Qualified expenses |
Tuition, fees, and course materials required for enrollment. Course-related books, supplies, and equipment do not need to be purchased from the institution in order to qualify. |
Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment). |
| Payments for academic periods |
Payments made in 2011 for academic periods beginning in 2011 and in the first 3 months of 2012 |
| EDUCATIONAL CREDITS |
|---|
| |
AMERICAN |
LIFETIME |
| Married filing jointly |
$180,000 |
$122,000 |
| All other filing statuses |
$90,000 |
$61,000 |
| 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 2011.
- 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 18.
|
| ADOPTION CREDIT |
|---|
| Maximum credit for a child with special needs |
$13,360 |
| Other adoptions, qualified expenses |
Up to $13,360 |
| Phaseout range, modified adjusted gross income |
$185,210 - $225,210 |
Note: The Adoption Credit is not available for married couples filing separate returns; therefore, the adjusted gross income does not apply. |
|
|
 |
Google+
|
39159 Paseo Padre
Pkwy, Suite 315
Fremont, CA 94538
510.797.8661
510.797.1791 (Fax) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|