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Home Dictionary I Itemized Deduction An itemized deduction is an expense that can be deducted from Adjusted Gross Income (AGI) to reduce your tax bill. Detailed deductions must be reported on Schedule A of Form 1040. Most taxpayers have the option to either itemize deductions or claim a standard deduction that applies to their filing status. The types of expenses that can be classified have been drastically reduced by the Tax Cuts and Jobs Act (TCJA), which went into effect in 2018. Additional Child Tax Credit
September 25, 2022 The Supplemental Child Tax Credit was the refundable portion of the Child Tax Credit. American Opportunity Tax Credit (AOTC)
September 25, 2022 The American Opportunity Tax Credit (AOTC) helps offset the cost of post-secondary education for students or their parents (if the student is a dependent). Capital Loss Carryover
September 25, 2022 Capital losses that exceed capital gains for the year may be used to offset normal taxable income of up to $3,000 in any tax year. Child Tax Credit
September 25, 2022 A child tax credit is a refundable tax credit claimed by completing Form 1040 and attaching Form 8812 to the return. Deductible
September 25, 2022 Deductible taxes are expenses that a taxpayer or business can deduct from their adjusted gross income, which reduces their income, thereby reducing the total tax they must pay. Deduction
September 25, 2022 A deduction is an expense that can be deducted from taxable income to reduce the amount owed. Earned Income Credit (EITC)
September 25, 2022 The Earned Income Tax Credit (EITC) is a refundable tax credit used to supplement the wages of low-income workers and help offset the impact of Social Security taxes. Exemption
September 25, 2022 The exemption reduces the amount of income that would otherwise be taxed. Foreign Tax Credit
September 25, 2022 A foreign tax credit is a US tax credit that offsets income tax paid in other countries. Form 1045
September 25, 2022 As a result of the Tax Cuts and Jobs Act (TCJA), most taxpayers can now only carry forward net operating losses (NOLs) that occur in tax years after 2017 to a later year. Form 2106-EZ Unreimbursed Employee Business Expenses
September 25, 2022 Form 2106-EZ has been used by employees to deduct work-related expenses, including food, hotel, airfare, and vehicles. Form 4684
September 25, 2022 Form 4684 is the U.S. Internal Revenue Service (IRS) form for reporting profits or losses from accidents and thefts that occur as a result of a federally declared natural disaster that may be deductible for taxpayers who detail deductions. Form 4952
September 25, 2022 IRS Form 4952 determines the amount of deductible investment interest expense as well as interest expense that can be carried forward. Form 5405
September 25, 2022 Form 5405, First Time Homebuyer Loan and Loan Repayment, is a tax form distributed by the Internal Revenue Service (IRS). General Business Tax Credit
September 25, 2022 The total business credit is the total value of all tax credits claimed by the business for the tax year. Historic Structure
September 25, 2022 A historic building is a subcategory of historic property as defined by the National Register of Historic Places. Home Mortgage Interest Deduction
September 25, 2022 Mortgage interest deduction helps homeowners reduce the amount of taxes they owe. Homestead Exemption
September 25, 2022 The exemption of the household plot reduces the obligation to pay state tax on the property of homeowners. Hope Credit
September 25, 2022 The Hope Credit Program allows eligible students who have not yet completed their four years of college to qualify for a $2,500 tax credit. IRS Publication 463
September 25, 2022 IRS Publication 463 clarifies business-related expenses that an individual taxpayer can deduct to reduce their total taxable income. IRS Publication 972
September 25, 2022 Publication 972 was used to calculate one of America’s most popular tax credits, the Child Tax Credit. Lifetime Learning Credit
September 25, 2022 Lifetime student loan is for qualified tuition and education-related expenses paid by eligible students enrolled in a qualifying institution. Long-Term Capital Gain or Loss
September 25, 2022 Long-term capital gains or losses refer to the sale of investments made after holding them for 12 months or longer. Modified Accelerated Cost Recovery System (MACRS)
September 25, 2022 The Modified Accelerated Cost Recovery System (MACRS) allows businesses to recover the cost of certain assets that wear out over time. Non-Refundable Tax Credit
September 25, 2022 A non-refundable tax credit is a type of income tax credit that reduces your dollar-for-dollar tax liability.