B Rite Taxes

The maximum amount of credit for Tax Year 2020 is:

• $6,660 with three or more qualifying children
• $5,920 with two qualifying children
• $3,584 with one qualifying child
• $538 with no qualifying children.

You must have earned income to qualify for this credit and it begins to phase out for single taxpayers with AGI of $50,954 (Joint $56,844).

The CTC is a $2,000 credit for each child under age 17 that is claimed as a dependent on your tax return. It also provides $500 for dependents over age 17. You need to have earned $2,500 to qualify for this credit and it begins to phase out for single taxpayers with an AGI of $200K (Joint $400K).

The Child & Dependent Care credit reimburses a portion of expenses paid for the care of a child under age 13 or a dependent who cannot mentally or physically care for themselves. The credit is $3,000 for one dependent and $6,000 for two or more dependents.

The two education credits are 1) American Opportunity Tax Credit and 2) Lifetime Learning Credit. The AOTC reimburses up to $2,500 of qualified education expenses per student for 4 years of an undergraduate degree. The LLC reimburses up to $2,000 in qualified education expenses per tax return.

 An eligible educator can deduct up to $250 of any non-reimbursed business  expenses for classroom materials, such as books, supplies, computers  including related software and services or other equipment that the  eligible educator uses in the classroom.  

Deduct up to $2,500 for interest paid on a qualified student loan account. You should receive a Form 1098-E from the lender you are making payments to if you pay at least $600 per year in qualified student loan interest.