Individual Income Tax Credits

TOPICS / INDIVIDUALS

October 1, 2009

IRS Further Clarifies WOTC “Disconnected Youth” Definition

The IRS released a notice defining the terms “unemployed veteran” and “disconnected youth” for purposes of the Sec. 51 work opportunity tax credit.

August 1, 2009

IRS Notice Provides Work Opportunity Tax Credit Definitions

The IRS has released a notice that defines the terms “unemployed veteran” and “disconnected youth” for purposes of the Sec. 51 work opportunity tax credit.

July 1, 2009

Residential Energy-Efficient Property Credit Rules Issued

The IRS has provided guidance to manufacturers and consumers on satisfying the requirements of the residential energy-efficient property credit.

March 1, 2009

IRS Explains How Unmarried Taxpayers Allocate First-Time Homebuyer Credit

The IRS has issued Notice 2009-12, explaining how the Sec. 36 first-time homebuyer credit should be allocated between unmarried taxpayers who buy a principal residence together.

October 1, 2008

Housing Act Contains Tax Provisions

On July 30, 2008, the president signed into law the Housing Assistance Tax Act of 2008, containing tax provisions affecting homeowners and first-time homebuyers, as well as changes to the rules governing the low-income housing credit, tax-exempt bonds, and the alternative minimum tax (AMT).

September 1, 2008

Individual Taxation Report

This article covers recent developments affecting taxation of individuals, including legislation, regulations, and IRS guidance.

May 1, 2008

Alternative Motor Vehicles and the AMT

Effective for 2006, Congress provided a credit for alternative motor vehicles in an effort to reduce U.S. reliance on fossil fuels and imported oil.

February 1, 2008

Regulations Provide Guidance on Child and Dependent Care Credit

Sec. 21 was enacted to provide families with a tax benefit to help them stay in the workplace—a nonrefundable child and dependent care tax credit for employment-related expenses for the care of certain qualifying individuals.

December 1, 2007

Does Imprisonment Constitute a Temporary Absence When Applying the EIC Residency Rules?

Editor: Michael D. Koppel, CPA, PFS Should a person’s imprisonment be considered a temporary absence from home for purposes of the residency requirement for the earned income credit (EIC)? The Tax Court recently held that a taxpayer’s jail confinement after her arrest but before her conviction was a temporary absence

November 1, 2007

The WOTC Expanded

Editor: Kevin F. Reilly, J.D., CPA The work opportunity tax credit (WOTC) has been in existence for years; however, the Small Business and Work Oppor-tunity Tax Act of 2007, P.L. 110-28 (SBWOTA), expanded the definition of some of the target groups, creating tax incentives that will affect more clients than

November 1, 2007

Final Regs. on Dependent Care Expenses

The Service has issued final regulations on the Sec. 21 credit for child and dependent expenses (TD 9354). The final regulations adopt, with changes, proposed regulations that were released in May 2006 (REG-139059-02). The final regulations apply to tax years ending after August 14, 2007. Sec. 21 allows a credit

October 1, 2007

Some Prior-Year MTCs Will Be Refundable Beginning in 2007

Editor: Joel E. Ackerman, CPA, MST A growing number of individual taxpayers have been subject to tax under the alternative minimum tax (AMT). Sec. 53(a) provides a minimum tax credit (MTC) for AMT paid in prior years that was attributable to deferral adjustments. The MTC is carried forward to offset

August 1, 2007

Claiming Passive Activity Credits

Credits arising from passive activities are allowable only to the extent a shareholder’s regular tax liability is attributable to passive activities for the year. The tax attributable to passive activities is the difference between the: Shareholder’s regular tax liability under Sec. 26(b) based on all income (disregarding credits), and Regular