Chapter 25 Personal Tax Credits Reduce Your Tax Liability

In this chapter you will find discussions of the child tax credit, dependent care credit, earned income credit (EIC), adoption credit, retirement savings credit, mortgage interest credit, credit for plug-in electric vehicles, the premium tax credit, the residential energy credits and the health coverage credit for displaced workers. Education tax credits are discussed inChapter 33.

The child tax credit is $1,000 for each qualifying dependent child under age 17. To claim the credit, you must follow the steps on the “Child Tax Credit Worksheet.” There is a phaseout of the credit (25.3). If the credit exceeds your tax liability, you may be entitled to a refundable credit called the “additional tax child credit”.

Depending on your income, ...

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