Maximum Credit

Income Limits

Other Limits

Foreign tax credit

No limit

No limit

Credit cannot exceed the portion of the tax related to taxable income from foreign sources

Dependent care credit

$720 for one dependent; $1,440 for two or more dependents

For those with AGI over $28,000, credit is limited to maximum of $480 for one dependent; $960 for two or more dependents

Expenses eligible for credit reduced dollar for dollar by employer-paid dependent care

Credit for the elderly and permanently disabled

15% of eligible credit

·         $5,000 AGI for unmarried, 65+; unmarried, under 65 but disabled; married filing jointly but only one spouse 65+

·         $7,500 for married filing jointly, both 65+ or one 65+ and other disabled; both under 65 but disabled

·         $3,750 for married filing separately, 65+ or under 65 but disabled

Reduced eligible income by one half of excess AGI over:

·         $7,500 if unmarried

·         $10,000 for married filing jointly

·         $5,000 for married filing separately

Education credits

Hope credit of up to $1,500 per child; lifetime learning of up to $1,000 per taxpayer

Full credit for singles with modified AGI under $40,000 ($80,000 on a join return)

Child tax credit

$600 per child under age 17

Full credit for singles with modified AGI no more than $75,000 ($110,000 on a join return)

Adoption credit

$5,000 for nonspecial needs child; $6,000 for special needs child

Full credit for modified AGI no more than $75,000 (regardless of filing status)

Eligible costs reduced dollar for dollar if covered by employer-provided plan

First-time DC homebuyer credit

$5,000 of the purchase price ($2,500 for married filing separately)

Full credit for AGI up to $70,000 ($110,000 on a joint return)

Mortgage interest credit

Interest paid times mortgage interest certificate rate

Minimum tax credit

No limit

Rate reduction credit

$300 for singles; $500 for heads of households; $600 married filing jointly

Only applies to taxpayers who did not receive their advance refund check; no credit for dependents

Earned income credit

34% of earned income for one eligible child; 40% for two or more eligible children; 7.5% for no eligible children

Maximum credit only if AGI/earned income no more than $28,218 for one eligible child; $32,121 for two or more eligible children; $10,710 for no children

Earned income may not exceed $2,450

Credit for excess Social Security tax

Any Social Security tax paid to two or more employers totaling more than $4,984.80