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Taking credit for your work: a roundup of federal lax credits available to individuals.

We've come a long way from 1863, when the individual income tax return consisted of a mere two pages. To make the payment of taxes more equitable, over the years tax credits have been created to address a bewildering array of circumstances. According to the IRS, approximately 34% of the 2011 individual income tax returns contained a tax credit. Although the Internal Revenue Code allows many different tax credits (Exhibit 1), the purpose of this article is to discuss the most common and enduring tax credits that may be applicable to the widest range of individual taxpayers.

Tax Credits for Parents

British philosopher Bertrand Russell once said, "The fundamental defect of fathers ... is that they want their children to be a credit to them." When dealing with income taxes, whether a taxpayer is entitled to a credit or not, children will have an effect on one's tax liability.

Child and Dependent Care Expenses

Prior to 1976, child and dependent care expenses were allowed as an itemized deduction. The Tax Reform Act of 1976 eliminated this deduction and created a 20% credit for the child and dependent care expenses claimed on a tax return. More than 13% of 2012 individual tax returns reporting tax credits {Exhibit 1) claimed the child and dependent care credit. Under current tax law, if a taxpayer makes payments to someone to care for their dependent who is under age 13, or to care for a spouse or other dependent who cannot care for themselves while working or looking for work, those payments may be eligible for a tax credit. The qualifying expenses may be for household services or expenses related to the care of a qualifying individual. There is an exception, however: If one parent stays home full-time, child care costs are not eligible for the credit Where is the credit claimed? Form 1040/Form 2441, Child and Dependent Care Expenses.

Amount? The credit can be up to 35% (maximum) of the taxpayer's qualifying expenses, subject to limitations.

Restriction? The credit is limited to a maximum of $3,000 for one dependent ($6,000 for more than one dependent), multiplied by the applicable rate, which varies from 20% to 35% depending on the taxpayer's adjusted gross income (AGI). The 35% rate is reduced by 1% (but not below 20%) for each $2,000 by which the taxpayer's AGI exceeds $15,000. Refundable? No.

Source. IRC section 21; IRS Publication 503, "Child and Dependent Care Expenses." Example. In Coultman v. Comm'r, (T.C. Summary Opinion 2013-36; Docket No. 16433-1 IS; filed May 9, 2013), the taxpayer owned and lived with her unemployed daughter and two grandchildren. One grandson was mentally disabled. The taxpayer correctly claimed her grandson as a dependent and testified that she paid her grandson's tuition at a private school because of his mental disability; however, she did not remember how much she paid.

Since she was not able to show documentation supporting her grandson's expenses, f she was denied the child care credit. As with all tax items, it is extremely important to document the child care expenses.

Adoption Expenses

The adoption credit was introduced in 1997 and revised by the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) in 2001. Currently, a credit may be available for a taxpayer incurring qualifying adoption-related expenses, including adoption fees, legal fees, traveling expenses, and any other expenses directly related to the legal adoption of an eligible child (someone under age 18 or is physically/mentally incapable of caring for themselves).

Where is the credit claimed? Form 1040/Form 8839, Qualified Adoption Expenses.

Amount? The maximum amount of qualified adoption expense per child is $12,970 in 2013 and increases to $13,190 in 2014. Unused credits may be carried forward for up to five years. An additional credit may be available for adoptions of a U.S. child with special needs.

Restriction? The credit phases out at AGI between $194,580 and $234,580 in 2013 ($197,880 and $237,880 in 2014), regardless of filing status. Married couples must file jointly (MFJ).

Refundable? No. For tax years 1997 through 2009, the credit was nonrefundable; for 2010 and 2011, the credit was refundable. Since 2012, the credit has again become nonrefundable.

Source. IRC section 23; Publication 17, "Your Federal Income Tax."

Example. In Field v. Comm'r (T.C. Memo. 2013-111; Docket No. 22522-11; filed April 18, 2013), the taxpayer, who had previously adopted children as a single parent, was married and lived with her husband during the last six months of the year. During the year, she adopted another child. She claimed the adoption expenses on a married filing separately (MFS) return. The Tax Court held she could not claim the adoption credit since she did not file an MFJ return. The theory behind this requirement is that spouses who live together share the cost of maintaining the household. Additionally, the court stated that the MFJ requirement prevents two parents from both claiming credits for the same child on separate returns.

Child Tax Credit

The child tax credit was created by the Taxpayer Relief Act of 1997 to help address the financial needs of growing families. Currently, a taxpayer may be allowed a credit for each child who:

* Is younger than age 17

* Does not provide over half of his own support

* Is living with the taxpayer for more than half of the tax year

* Is claimed as a dependent on the taxpayer's tax return

* Does not file a joint return for the year (except to claim a refund)

* Is a U.S. citizen, a U.S. national, or a U.S. resident alien

* Is a child (including an adopted, foster, or step child), sibling (including a stepbrother or stepsister), or a descendant of any of these.

Where is the credit claimed? Form 1040/Form 8812, Child Tax Credit.

Amount? The Jobs Growth and Tax Relief Reconciliation Act of 2003 (JGTRRA) increased the child tax credit to the current amount of $1,000 for each qualifying child.

Restriction? The $1,000 credit is reduced by $50 for each $1,000 of modified AGI above $75,000 (for single, head of household or qualifying widow filers; $55,000 for MFS; $110,000 for MFJ). Refundable credit? No.

Source. IRC section 24; Publication 972, "Child Tax Credit."

Example. In Cooper v. Comm'r (T.C. Summary Opinion 2013-59, Docket No. 11245-12S, filed July 22, 2013), the taxpayer lived with and supported a minor child. On his tax return, he claimed a dependency exemption deduction for the child, head of household (HH) filing status, and both the child tax credit and the earned income tax credit The child was younger than age 17, lived with and was fully supported by Cooper for more than half of the tax year, did not file a joint return, and was a U.S. citizen. Although Cooper was allowed a dependency exemption, he could not take the child care or earned income tax credit, because the minor did not pass the relationship test To maximize overall credits, taxpayers should take the child and dependent care credit and adoption credits before the child tax credit.

Additional Child Tax Credit

One of the changes made by EGTRRA is that, if a taxpayer cannot claim the full child tax credit because their tax liability was reduced to zero, they may be eligible for the additional child tax credit.

Where is the credit claimed? Form 1040/Form 8812, "Child Tax Credit." Amount? The amount varies with the number of children. For taxpayers with less than three children, the additional tax credit is the smaller of the unused portion of the child tax credit; or 15% of the taxpayer's earned income over $3,000.

For taxpayers with three children or more, the additional tax credit is the smaller of the unused portion of the child tax credit; or the larger of either 15% of the taxpayer's earned income over $3,000, or the sum of Social Security and Medicare taxes paid less the earned income credit.

The American Recovery and Reinvestment Act (ARRA) of 2009 decreased the earned income threshold from $10,000 to the current $3,000.

Restriction? The taxpayer must otherwise be eligible for the child tax credit. Refundable? Yes.

Source. IRC section 24; Publication 972, "Child Tax Credit."

Hope and Lifetime Learning Credits

The American Opportunity Tax Credit updated and replaced the Hope Credit but is still sometimes referred to as the Hope Credit. A taxpayer can claim the credit if he pays qualified education expenses for higher education on behalf of himself, a spouse, or an eligible student who is claimed as a dependent. To be eligible, the student must be pursuing a degree or certificate on at least a half-time basis.

Where is the credit claimed? Form 1040/Form 8863, American Opportunity and Lifetime Learning Credits.

Amount? The credit is equal to 100% of qualified tuition, fees, and course materials (not to exceed $2,000) plus 25% of the next $2,000 in qualified tuition, fees, and course materials. The maximum credit is $2,500 per student for each of the first four years of college.

Restriction? The taxpayer's modified AGI must be less than or equal to $180,000 (MFJ; $90,000 for other filing statuses). A taxpayer may not take both an American Opportunity Tax Credit or a Lifetime Learning Credit and a tuition and fees deduction for the same student in the same year.

Refundable? Up to 40% of the credit (a maximum of $1,000) is refundable.

A taxpayer may be able to claim a Lifetime Learning Credit for qualified education expenses paid for all eligible students. Unlike the American Opportunity credit, the Lifetime Learning Credit includes courses taken to acquire or improve job skills. Therefore, a student does not need to be pursuing a degree to be eligible.

Where is the credit claimed? Form 1040/Form 8863, American Opportunity and Lifetime Learning Credits.

Amount? The maximum credit is 20% of the qualified education expenses paid for all eligible students, up to a maximum of $2,000. In addition to tuition, qualified education expenses include other costs, such as student activity fees and course-related books and supplies if paid to the educational institution for enrollment.

Restriction? The taxpayer's modified AGI must be no more than $127,000/$ 108,000 in 2014 (MFJ) or $63,000/$54,000 in 2014 (other filing status). A taxpayer may not take an American Opportunity Tax Credit or a Lifetime Learning Credit and a tuition and fees deduction for the same student in the same year.

Refundable? No.

Source. IRC section 25A; Publication 970, "Tax Benefits For Education." Example. The taxpayer in Adams v. Comm V (T.C. Summary Opinion 2013-57, Docket No. 13767-12s, filed July 18,2013) claimed the Lifetime Learning Credit based on a six-page account summary statement received from her university as proof of her education credits. The amount in dispute was described as a "credit balance direct deposit." The IRS disallowed the deduction, since it was not clearly identified while the other amounts listed in the statement were specifically described as tuition and miscellaneous fees. Taxpayers are responsible for providing supporting documentation for any credit claimed.

Earned Income Tax Credit (EITC)

Created by the Tax Reduction Act of 1975, and modified several times since, the EITC is a credit for low-income wage earners.

Where is the credit claimed? Form 1040, Schedule EIC.

Amount? The amount of the EITC changes based upon a taxpayer's earnings, filing status, and number of eligible children. For 2014, this can range from $6,143 (more than 3 qualifying children) to $496 (no qualifying children).

Restriction? To be eligible for the EITC a taxpayer must meet the following requirements:

* Have a valid Social Security number

* Not file MFS

* Be a U.S. citizen or resident alien

* Not file Form 2555/2555-EZ relating to foreign earned income

* Not have more than $3,300 in investment income

* Have earned income

* Have AGI (for 2014) less than:

* $46,997 ($52,427 MFJ) with three or more qualifying children

* $43,756 ($49,186 MFJ) with two qualifying children

* $38,511 ($43,941 MFJ) with one qualifying child

* $14,590 ($20,020 MFJ) with no qualifying children.

Refundable? Yes.

Source. IRC section 32; Publication 596, "Earned Income Credit."

Example. The taxpayer in Edge v. Comm'r (T.C. Summary Opinion 2013-68, Docket No. 20054-12s, filed August 19, 2013) lived with and fully supported his fiancee, his fiancee's two children, and her mother. The taxpayer satisfied the eligibility requirements and sought to claim one of the two children as a qualifying child for EITC purposes. The child did not file a joint return, was younger than age 19, and shared the taxpayer's residence; however, the child did not meet any of the relationship requirements. Therefore, he could not use the child in determining his EITC.

Tax Credits for the Elderly and Disabled

Under current law, a credit may be allowed for a taxpayer who is age 65 before the end of the tax year or who is permanently and totally disabled and retired on that disability during the year.

Where is the credit claimed? Form 1040, Schedule R, Credit for the Elderly or Disabled Amount? The maximum amount for qualified individuals is 15% of either $5,000 (Single/MFJ with one qualified individual), $7,500 (MFJ with two qualified individuals), or $3,750 (MFS), reduced by income excluded by law, such as Social Security, railroad retirement, and veteran's benefits. The potential credit is further reduced by one-half of the taxpayer's AGI in excess of the $5,000, $7,500, or $10,000 thresholds.

Restriction? To qualify, a taxpayer's AGI, Social Security, and other nontaxable pension amounts must be less than:

* $17,500/$5,000 (single, head of household, or qualifying widow with dependent child)

* $25,000/$7,500 (MFJ)

* $20,000/$5,000 (MFJ, with only one spouse qualifying)

* $12,500/$3,750 (MFS and did not live with spouse the entire year).

If a taxpayer is younger than age 65, a doctor's statement regarding the taxpayer's disability is required.

Refundable? No.

Source. IRC section 22; Publication 524, "Credit for the Elderly or the Disabled."

Tax Credits for Homeowners

The federal government also allows a number of tax credits for U.S. homeowners.

Special Mortgages

Taxpayers who received a mortgage credit certificate from certain state or local governments when they were approved for a mortgage may be able to claim a credit for a portion of the annual home mortgage interest paid on their primary residence. The mortgage interest credit is intended to help low-income individuals qualify for a loan by increasing their disposable income.

Where is the credit claimed? Form 1040/Form 8396, Mortgage Interest Credit.

Amount? The MCC rate is multiplied by the interest paid or accrued by the taxpayer.

Restriction? If the MCC rate is greater than 20%, the amount of the allowable credit cannot exceed $2,000.

Refundable? No, but unused credits due to a zero tax liability may be carried forward for up to three years.

Source. IRC section 25; Publication 530, "Tax Information for Homeowners."

Nonbusiness Energy Property

Homeowners who install specific energy-efficient home improvements in their primary residences may be eligible for the non-business energy property credit.

Where is the credit claimed? Form 1040/Form 5695, Residential Energy Credits.

Amount? The credit is equal to 10% of the amount incurred by the taxpayer for the installed qualified energy efficiency improvements and residential energy property expenditures.

Restriction? The total non-business energy credit taken cannot exceed $500. The annual credit cannot exceed $200 for windows; $50 for a main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy-efficient building property.

Refundable? No.

Source. IRC section 25C; Publication 530, "Tax Information for Homeowners."

Residential Energy Efficiency Property

Energy saving improvements made to a taxpayer's current residence or home under construction may be eligible for the residential energy efficient property credit. This credit applies to both a primary and secondary home.

Where is the credit claimed? Form 1040/Form 5695, Residential Energy Credits.

Amount? The credit is equal to 30% of the qualified solar electric property, solar water heating property, fuel cell property (maximum of $500 per half kilowatt), small wind energy property, or geothermal heat pump property expenditures made by the taxpayer during the year.

Restriction? The credit is not applicable to property placed in service after December 31, 2016.

Refundable? No, but any excess credit may generally be carried forward to the next tax year.

Source. IRC section 25D; Publication 530, "Tax Information for Homeowners."

Health-Related Credits

The most talked-about credits as preparers get ready for the upcoming filing season have been those credits related to healthcare.

Health Insurance Premium Tax Credit

Created in 2010 by the Patient Protection and Affordable Care Act (PPACA), this tax credit may be available to help taxpayers afford health insurance coverage purchased through a health insurance marketplace (also known as an exchange).

Where is the credit claimed? Form 1040; or taxpayers can chose to have the credit paid directly to the insurance company to lower monthly premiums.

Amount? The credit is equal to the total cost of the benchmark plan that would cover the family, less the individual or family's expected contribution for coverage. The taxpayer's expected contribution (which increases as household income increases) is based on a percentage of the household income, ranging from 2% to 9.5%. The maximum amount of the credit is the actual health insurance premium paid by the taxpayer.

Restriction? This credit is available beginning in 2014, and also has the following restrictions:

* Insurance must be purchased through the exchange.

* The household's total modified AGI must be between 100% and 400% of the federal poverty line (starting at $11,670 for one individual and rising $4,060 for each additional person) for their family size.

* The taxpayer cannot obtain affordable coverage through their employer plan.

* The taxpayer is not eligible for coverage through a government program (Medicaid, Medicare, CHIP or Tricare).

* The taxpayer cannot be claimed as a dependent by another person.

* The taxpayer does not file a MFS tax return (there is an exception for certain victims of domestic abuse).

Refundable? Yes.

Source. IRC section 36B; Publication 502, "Medical and Dental Expenses."

Retirement Credit

In 2001, the retirement savings contributions credit (saver's credit) was created to provide a tax credit for contributions to IRAs, 40Iks, and other plans. By providing the credit, the government is effectively "matching" the taxpayer's contribution.

Where is the credit claimed? Form 1040/Form 8880.

Amount? Taxpayers may take a credit of up to $1,000 ($2,000 MFJ), calculated by multiplying the retirement contribution by a percentage ranging from 0% to 50%, depending upon filing status and AGI.

Restriction? A taxpayer cannot take the credit if

* AGI is greater than $30,000 (single/ MFS/qualifying widow), $45,000 (head of household) or $60,000 (MFJ) in 2014.

* the contribution is made by someone younger than age 18.

* the taxpayer is claimed as a dependent on someone else's tax return or is a fulltime student.

Refundable? No.

Source. IRC section 25B; Publication 590, "Individual Retirement Arrangements."

Foreign Tax Credit

The foreign tax credit has been one of the top five credits claimed on individual income tax returns over the past several years. The purpose of the credit is to avoid the same income being taxed by the United States and by the foreign country in which the income is earned.

Where is the credit claimed? Form 1040/Form 1116, Foreign Tax Credit.

Amount? Qualified foreign income taxes paid during the year can be taken as a foreign tax credit or as an itemized deduction. The credit amount is the smaller of the amount of foreign tax paid or accrued or the amount of U.S. tax related to foreign source income. A carryback for one year or carryover for 10 years is allowed for any unused foreign tax credit. The foreign tax credit cannot be more than the following:

U.S. tax liability x Foreign Sourced Income Total Worldwide

Taxable Income

Restriction? Exceptions apply to those countries that are designated as providing support for acts of international terrorism, for which the United States does not have diplomatic relations, or which are not recognized by the United States (with some exceptions).

Refundable? No.

Source. IRC section 27 and section 901; Publication 514, "Foreign Tax Credit for Individuals."

Other Considerations

This article was meant to be an overview of federal income taxes, but there are many states that offer income tax credits to individuals that may be similar to the federal tax credits. For example, according to the IRS website (Exhibit 3) there are many states which offer an EITC. In many such states, the EITC is based upon a percentage of the federal EITC. Some states have their own unique credits, such as credits related to certain charitable contributions (Arizona) and education credits for dependents attending kindergarten through grade 12 (Louisiana).

Although scheduled to expire, several credits, such as the Residential Energy Efficiency Property Credit and the Health Insurance Premium Tax Credit, were recently passed by Congress through the Tax Increase Prevention Act of 2014, which is awaiting approval by the Senate at the time of publication.

To paraphrase Charles Lyell, a 19th-century British lawyer, "Never call an accountant a credit to his profession; a good accountant is a debit to his profession." To be a debit to the profession, accountants should ensure they know what tax benefits are available for taxpayers, at both the federal and state level.

Patricia Z. Galletta, CPA, is an assistant professor of accounting in the School of Business at the College of Staten Island, Staten Island, N. Y.

Tax Credits under the Internal Revenue Code
(Items in red summarized in this article)

Subpart A--Nonrefundable Personal Credits
  section 21. Expenses for household and dependent care services
              necessary for gainful employment
  section 22. Credit for the elderly and the permanently and totally
  section 23. Adoption expenses
  section 24. Child tax credit
  section 25. Interest on certain home mortgages
  section 25A. Hope and Lifetime Learning Credits
  section 25B. Elective deferrals and IRA contributions
               by certain individuals
  section 25C. Nonbusiness energy property
  section 25D. Residential energy efficient property
  section 26. Limitation based on tax liability;
              definition of tax liability

Subpart B--Other Credits
  section 27. Taxes of foreign countries and possessions of
              the United States; possession tax credit
  section 30. Certain plug-in electric vehicles
  section 30A. Puerto Rico economic activity credit
  section 30B. Alternative motor vehicle credit
  section 30C  Alternative fuel vehicle refueling property credit
  section 30D. New qualified plug-in electric drive motor vehicles

Subpart C--Refundable Credits
  section 31. Tax withheld on wages
  section 32. Earned income
  section 33. Tax withheld at source on nonresident aliens
              and foreign corporations
  section 34. Certain uses of gasoline and special fuels
  section 36. First-time homebuyer credit
  section 36B. Refundable credit for coverage under a
               qualified health plan
  section 37. Overpayments of tax

Subpart D--Business Related Credits
  section 38. General business credit
  section 39. Carryback and carryforward of unused credits
  section 40. Alcohol, etc., used as fuel
  section 40A. Biodiesel and renewable diesel used as fuel
  section 41. Credit for increasing research activities
  section 42. Low-income housing credit
  section 43. Enhanced oil recovery credit
  section 44. Expenditures to provide access to disabled individuals
  section 45. Electricity produced from certain renewable
              resources, etc.
  section 45A. Indian employment credit
  section 45B. Credit for portion of employer social security
               taxes paid with respect to employee cash tips
  section 45C. Clinical testing expenses for certain drugs
               for rare diseases or conditions
  section 45D. New markets tax credit
  section 45E. Small employer pension plan startup costs
  section 45F. Employer-provided child care credit
  section 45G. Railroad track maintenance credit
  section 45H. Credit for production of low sulfur diesel fuel
  section 451. Credit for producing oil and gas from marginal wells
  section 45J. Credit for production from advanced nuclear
               power facilities
  section 45K. Credit for producing fuel from a nonconventional source
  section 45L. New energy efficient home credit
  section 45M. Energy efficient appliance credit
  section 45N. Mine rescue team training credit
  section 45O. Agricultural chemicals security credit
  section 45P. Employer wage credit for employees who are active duty
               members of the uniformed services
  section 45Q. Credit for carbon dioxide sequestration
  section 45R. Employee health insurance expenses of small employers

Subpart E--Rules for Computing Investment Credit
  section 46. Amount of credit
  section 47. Rehabilitation credit
  section 48. Energy credit
  section 48A. Qualifying advanced coal project credit
  section 48B. Qualifying gasification project credit
  section 48C. Qualifying advanced energy project credit
  section 48D. Qualifying therapeutic discovery project credit
  section 49. At-risk rules
  section 50. Other special rules
              [sections 50A, 50B, repealed]

Subpart F--Rules for Computing Work Opportunity Credit
(sections 51-52)

Subpart G--Credit against Regular Tax for Prior Year Minimum
Tax Liability (section 53)/General Business Credit

Subpart H--Nonrefundable Credit to Holders of Clean Renewable
Energy Bonds (section 54)

Subpart I--Qualified Tax Credit Bonds (sections 54A-54F)/Form 8912

Subpart J--Build America Bonds (section 54AA)

Number of Individual Income Tax Returns Claiming Credits, 2012

                                                All Returns

                                             Number    Percentage
Credit Type                              of Returns    of Returns

Individual Tax Returns                   47,359,402
Reporting Tax Credits
  Child tax credit                       22,889,677        48.33%

  Nonrefundable education credit         10,079,053        21.28%

  Foreign tax credit                      7,096,246        14.98%

  Retirement savings                      6,925,814        14.62%
  contribution credit

  Child care credit                       6,339,717        13.39%

  American opportunity credit             5,058,762        10.68%
  used to offset income tax
  before credits

  Earned income credit used to offset     4,152,208         8.77%
  income tax before credits

  Residential energy credits              2,225,307         4.70%

  General business credit                   466,097         0.98%

  Prior-year minimum tax credit             262,061         0.55%

  Refundable prior-year minimum             190,851         0.40%
  tax credit used to offset
  income tax before credits

  Credit for the elderly or disabled         67,430         0.14%

  Mortgage interest credit                   46,653         0.10%

  Adoption credit                            30,485         0.06%

  Qualified plug-in electric                 25,061         0.05%
  vehicle credit

  Regulated investment company               19,262         0.04%
  credit used to offset income
  tax before credits

  Health insurance tax credit                 9,755         0.02%
  used to offset income tax
  before credits

  Alternative fuel vehicle                    8,104         0.02%
  refueling properly credit

  Alternative motor vehicle credit            7,241         0.02%

  Other tax credits                           5,642         0.01%

  Qualified electric vehicle credit           1,958         0.00%

Source: IRS

State and Local Governments with Earned Income Tax
Credit (EITC)

                            Percentage of      Is Credit
State or Local Government   Federal Credit     Refundable?

1. Colorado (Funded in      10%                Yes
   budget surplus years

2. Connecticut              30%                Yes

3. Delaware (See tax        20%                No

4. District of Columbia     40%                Yes

5. Illinois                 10%                Yes

6. Indiana (No additional   9%                 Yes
   credit for 3 or more
   children or those
   filing jointly)

7. Iowa (see EITC in        14%                Yes
   topic index)

8. Kansas (see              17%                Yes
   instruction booklet;
   search: earned income

9. Louisiana (see IT-540B   3.5%               Yes
   instructions; find
   earned income)

10. Maine (see Schedule     5%                 No

11. Maryland                Up to 50%          Yes

12. Massachusetts           15%                Yes

13. Michigan (see Line 27   6%                 Yes

14. Minnesota (Working      83% (average)      Yes
    Family Credit)

15. Nebraska (see earned    10%                Yes
    income credit,
    Tax Instructions)

16. New Jersey              20%                Yes

17. New Mexico (personal    10%                Yes
    income tax form
    find EITC)

18. New York                30%                Yes

19. North Carolina after    4.5% (expires      Yes

20. Ohio (starts in 2014    5%                 No
    filing season)

21. Oklahoma (open the      5%                 Yes
    511 packet;
    find Earned
    Income Credit)

22. Oregon                  6%                 Yes

23. Rhode Island (see       25%                Partially
    form instructions)

24. Vermont                 32%                Yes

25. Virginia (see Low       20%                No
    Income Individuals

26. Wisconsin               4% (1 child)       Yes
                            11% (2 children)
                            34% (3 children)

27. New York City (search   5%                 Yes

28. Montgomery County,      72.5% of state     Yes
    Md.                     of Maryland
                            credit (see 11)

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Title Annotation:In Focus
Author:Galletta, Patricia Z.
Publication:The CPA Journal
Article Type:Cover story
Date:Dec 1, 2014
Previous Article:Investment knowledge and experience are needed.
Next Article:Employment contracts with post-employment obligations.

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