What are some common tax credits in the United States?

When it comes time to pay federal taxes, many Americans are able to take advantage of tax credits. Tax credits can significantly reduce the amount of taxes you owe. Here are some common tax credits in the United States:

The Earned Income Tax Credit (EITC) is a tax credit for low- and moderate-income working families. To qualify, you must have earned income from employment or self-employment. The amount of the credit depends on your income and family size.

The Child and Dependent Care Tax Credit (CDCTC) is a tax credit for families who pay for child care so that they can work or look for work. The credit is worth up to 35% of eligible child care expenses, up to a maximum of $3,000 per child or $6,000 for two or more children.

The Child Tax Credit (CTC) is a tax credit for families with children under the age of 17. The credit is worth up to $2,000 per child. To qualify, families must have an annual income of less than $200,000 ($400,000 for married couples filing jointly).

The American Opportunity Tax Credit (AOTC) is a tax credit for students who are attending college or vocational school. The credit is worth up to $2,500 per student. To qualify, students must be enrolled at least half-time and have an annual income of less than $80,000 ($160,000 for married couples filing jointly).

The Lifetime Learning Tax Credit (LLTC) is a tax credit for students who are taking college or vocational classes. The credit is worth up to $2,000 per student. To qualify, students must be enrolled in at least one class and have an annual income of less than $80,000 ($160,000 for married couples filing jointly).

The Small Business Health Care Tax Credit (SBHCTC) is a tax credit for small businesses that provide health insurance to their employees. The credit is worth up to 50% of eligible health care expenses. To qualify, businesses must have fewer than 25 full-time equivalent employees and must pay at least 50% of their employees’ health care premiums.

The Alternative Minimum Tax Credit (AMTC) is a tax credit for taxpayers who have paid the Alternative Minimum Tax (AMT). The credit is worth up to $3,000. To qualify, taxpayers must have an annual income of less than $200,000 ($400,000 for married couples filing jointly).