Information You'll Need:

• Your filing status

• Whether you can claim the child as a dependent

• The child's date of birth

Can a noncustodial parent claim the child tax credit for his or her child?

The noncustodial parent can claim the child tax credit for a child only if he or she is allowed to claim the child’s dependency exemption and meets the requirements for claiming the child tax credit. The noncustodial parent must also attach to his or her return a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, signed by the custodial parent. For information on who qualifies for the credit, taxpayer identification number requirements, and how to calculate the credit, see the Instructions for Form 1040 or Instructions for Form 1040A, U.S. Individual Income Tax Return. Can I claim both the child tax credit and the child and dependent care credit?

You can claim both the child tax credit and the child and dependent care credit on the same return if you qualify for both credits.

• If you qualify for one or both credits, you can claim the credits on Form 1040, Form 1040A, U.S. Individual Income Tax Return, or Form 1040NR, U.S. Nonresident Alien Income Tax Return. In addition, to claim the dependent care credit, you must complete Form 2441, Child and Dependent Care Expenses.

• The Instructions for Form 1040 and the Instructions for Form 1040A explain who qualifies for the child tax credit, taxpayer identification number requirements, and how to calculate the credit. • If you are claiming the child tax credit for a dependent child who has an ITIN, complete Part I of Schedule 8812 (Form 1040A or 1040), Child Tax Credit, and attach it to your Form 1040, 1040A, or 1040NR.

• If you are claiming the additional child tax credit, complete Parts II - IV of Schedule 8812 (Form 1040A or 1040).

• The Instructions for Form 2441 explain who qualifies for the dependent care credit and how to calculate it.

You may be able to claim the child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.

You may not take this credit if your filing status is married filing separately. The amount of the credit is a percentage of the amount of work-related expenses you paid to a care provider for the care of a qualifying individual. The percentage depends on your adjusted gross income. Dollar Limit The total expenses that you may use to calculate the credit may not be more than $3,000 (for one qualifying individual) or $6,000 (for two or more qualifying individuals).

Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual's well-being and protection. If you received dependent care benefits that you exclude or deduct from your income, you must subtract the amount of those benefits from the dollar limit that applies to you.

Qualifying Individual

A qualifying individual for the child and dependent care credit is:

• Your dependent qualifying child who is under age 13 when the care is provided

• Your spouse who is physically or mentally incapable of self-care and lived with you for more than half of the year, or

• An individual who is physically or mentally incapable of self-care, lived with you for more than half of the year, and either:

  • is your dependent; or

  • could have been your dependent except that he or she has gross income that equals or exceeds the exemption amount, or files a joint return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another taxpayer’s 2015 return.

Physically or Mentally Not Able to Care for Oneself - An individual is physically or mentally incapable of self-care if, as a result of a physical or mental defect, the individual is incapable of caring for his or her hygiene or nutritional needs, or requires the full-time attention of another person for the individual's own safety or the safety of others. Children of Divorced or Separated Parents or Parents Living Apart - A noncustodial parent who is claiming a child as a dependent should review the rules under the topic Child of divorced or separated parents or parents living apart in Publication 503, Child and Dependent Care Expenses, because a child may be treated as the qualifying individual of the custodial parent for the child and dependent care credit, even if the noncustodial parent is entitled to claim the dependency exemption for the child. Individual Qualifying for Part of Year - If an individual is a qualifying individual for only a part of the tax year, only those expenses paid for care of the individual during that part of the year are included in calculating the credit.

Taxpayer Identification Number - You must provide the taxpayer identification number (usually the social security number) of each qualifying individual. Care of a Qualifying Individual The care may be provided in the household or outside the household; however, do not include any amounts that are not primarily for the well-being of the individual. You should divide the expenses between amounts that are primarily for the care of the individual and amounts that are not primarily for the care of the individual. You must reduce the expenses primarily for the care of the individual by the amount of any dependent care benefits provided by your employer that you exclude from gross income. In general, you can exclude up to $5,000 for dependent care benefits received from your employer.

Additionally, in general, the expenses claimed may not exceed the smaller of your earned income or your spouse’s earned income; however, a special rule applies if your spouse is a full-time student or incapable of self-care. Care Providers You must identify all persons or organizations that provide care for your child or dependent. You must report the name, address, and taxpayer identification number (either the social security number or the employer identification number) of the care provider on your return. If the care provider is a tax-exempt organization, you need only report the name and address of the organization on your return.

You can use Form W-10 (PDF), Dependent Care Provider's Identification and Certification, to request this information from the care provider. If you cannot provide information regarding the care provider, you may still be eligible for the credit if you can show that you exercised due diligence in attempting to provide the required information. If you pay a provider to care for your dependent or spouse in your home, you may be a household employer. If you are a household employer, you may have to withhold and pay social security and Medicare taxes and pay federal unemployment tax. For more information, refer to Employment Taxes for Household Employers in Publication 503, Publication 926, Household Employer's Tax Guide, or Topic 756.

Payments to Relatives or Dependents - The care provider cannot be your spouse, the parent of your qualifying individual, your child who is under the age of 19, or a dependent for whom you or your spouse may claim an exemption on your return. Reporting on Your Tax Return If you qualify for the credit, complete Form 2441 (PDF), Child and Dependent Care Expenses, and Form 1040 (PDF) or Form 1040A (PDF), U.S. Individual Income Tax Return, or Form 1040NR (PDF), U.S. Nonresident Alien Income Tax Return. If you received dependent care benefits from your employer (an amount is shown on your Form W-2 (PDF), Wage and Tax Statement), you must complete Part III of Form 2441. You cannot claim the child and dependent care credit if you use Form 1040EZ (PDF), Income Tax Return for Single and Joint Filers With No Dependents.

A credit for taxpayers:

• aged 65 or older OR retired on permanent and total disability and received taxable disability income for the tax year; AND

• with an adjusted gross income OR the total of nontaxable Social Security, pensions annuities or disability income under specific limits

The credit ranges between $3,750 and $7,500.

Lifetime Learning Credit at a Glance A credit for up to $2,000 per year to pay for qualified tuition and required enrollment fees at an eligible educational institution for you, your spouse or a dependent, if your modified adjusted gross income (MAGI) is $65,000 or less ($130,000 or less for married filing jointly). You cannot claim this credit for a student, if you claimed the American Opportunity Tax Credit for that student. The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses--including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return.

Who can claim the LLC?

To claim a LLC, you must meet all three of the following:

1. You, your dependent or a third party pay qualified education expenses for higher education

2. You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution

3. The eligible student is yourself, your spouse or a dependent you listed on your tax return

American Opportunity Tax Credit at a Glance Español A credit for tuition, required enrollment fees and course material for the first four years of post-secondary education for up to $2,500 per eligible student per year. Your modified adjusted gross income (MAGI) must be under $90,000 ($180,000 for joint filers) and you must not have claimed the AOTC or the former Hope Credit for more than four tax years for the same eligible student. Forty percent of this credit may be refundable. American Opportunity Tax Credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.You can get a maximum annual credit of $2,500 per eligible student. If the credit brings the amount of tax you owe to zero, you can have 40 percent of any remaining amount of the credit (up to $1,000) refunded to you. Who is an eligible student for AOTC?

To be eligible for AOTC, the student must:

• Be pursuing a degree or other recognized education credential

• Be enrolled at least half time for at least one academic period* beginning in the tax year

• Not have finished the first four years of higher education at the beginning of the tax year

• Not have claimed the AOTC or the former Hope credit for more than four tax years

• Not have a felony drug conviction at the end of the tax year *Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. The schools determine the academic periods. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period. What are the income limits for AOTC?

• To claim the full credit, your MAGI (modified adjusted gross income) must be $80,000 or less ($160,000 or less for married filing jointly).

• You receive a reduced amount of the credit if your MAGI is over $80,000 but less than $90,000 (over $160,000 but less than $180,000 for married filing jointly)

• You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers). MAGI for most people is the amount of AGI, adjusted gross income, shown on your tax return. On Form 1040A, AGI is on line 22 and is the same as MAGI.

If you file Form 1040, you add the following amounts to AGI (line 38):

1. Foreign earned income exclusion,

2. Foreign housing exclusion,

3. Foreign housing deduction,

4. Exclusion of income by bona fide residents of American Samoa, or of Puerto Rico.

You, your spouse and any qualifying child you list on your tax return must each have a Social Security number that is valid for employment.

Filing Status You must file:

• Married filing jointly

• Head of household

• Qualifying widow(er)

• Single

You can't claim EITC if your filing status is married filing separately. If you, or your spouse, are a nonresident alien, see Publication 519, U.S. Tax Guide for Aliens, to find out if you are eligible for EITC.

Income Earned During 2015

• Your tax year investment income must be $3,400 or less for the year.

• Must not file Form 2555, Foreign Earned Income or Form 2555-EZ, Foreign Earned Income Exclusion.

• Your total earned income must be at least $1.

• Both your earned income and adjusted gross income (AGI) must be no more than:

Filing Status Qualifying Children Claimed Zero One Two Three or more Single

Head of Household

or Surviving Spouse $14,820 $39,131 $44,454 $47,747

Married Filing Jointly $20,330 $44,651 $49,974 $53,267

Mortgage Interest Credit at a Glance The mortgage interest credit helps lower-income individuals afford home ownership. You must contact the appropriate government agency about acquiring a Mortgage Credit Certificate (MCC) before getting a mortgage or buying a home. If you itemize your deductions, you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit you claim. Residential Energy Efficient Property Credit (Section 25D) at a Glance A credit of 30 percent of the expenditures made by a taxpayer during the taxable year for:

• qualified solar electric systems;

• qualified solar water heaters;

• qualified fuel cell property;

• qualified small wind energy property; and

• qualified geothermal heat pumps.

The credit for expenditures made for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property; the amounts of the other qualified expenditures eligible for the credit are not limited. In addition, this credit may be carried over if it exceeds the limitation imposed by section 26(a). The credit is available for property placed in service through Dec. 31, 2016. The credit for solar electric property and solar water heating property is extended for property placed in service through December 31, 2021, at applicable percentages as described in the statute.

Nonbusiness Energy Property Credit (Section 25C) at a Glance A credit of 10 percent of the cost of qualified energy-efficient improvements. Qualified improvements include adding insulation, energy-efficient exterior windows and doors, and certain roofs. The cost of installing these items is not included in the credit calculation. Additionally, a credit is available, including the costs of installation, for certain high-efficiency heating and air-conditioning systems, as well as highefficiency water heaters and stoves that burn biomass fuel. There is a lifetime limitation of $500, of which only $200 may be used for windows. Qualifying improvements must have been placed in service in the taxpayer's principal residence located in the United States through Dec. 31, 2016. Low-Income Housing Credit at a Glance A credit for owners of residential low-income rental buildings satisfying specified conditions that can be taken over a 10-year credit period. The state housing credit agency (Agency) providing credits completes Part I of Form 8609 Low-Income Housing Credit Allocation and Certification (PDF), for each building and attaches a copy of each completed Form 8609 to the Form 8610, Annual Low-Income Housing Credit Agencies Report (PDF), which are then filed with the Low-Income Housing Credit (LIHC) unit at the Philadelphia campus. The original of the Form 8609 is sent by the Agency to the building owner, who submits the original to the LIHC unit by the due date (including extensions) of the first tax return the owner files Form 8609-A, Annual Statement for Low-Income Housing Credit (PDF).

Health Care Premium Tax Credit & Health Coverage Tax Credit Who Qualifies You are eligible for the premium tax credit if you meet all of the following requirements:

• Have household income that falls within a certain range.

• Do not file a Married Filing Separately tax return o Unless you meet the criteria in the regulations, which allows certain victims of domestic abuse and spousal abandonment to claim the premium tax credit using Married Filing Separately

• Cannot be claimed as a dependent by another person.

• In the same month – a coverage month – you, or a family member:

  • Enroll in coverage through a Health Insurance Marketplace

  • Are not able to get affordable coverage through an eligible employer-sponsored plan that provides minimum value.

  • Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.

  • Pay the share of premiums not covered by advance credit payments For more information about these eligibility requirements see Eligibility for the Premium Tax Credit. During enrollment through the Marketplace, the Marketplace will determine if you are eligible for advance payments of the premium tax credit, also called advance credit payments. Advance credit payments are amounts paid directly to your insurance company on your behalf to lower the out of pocket cost for your health insurance premiums.

Health Coverage Tax Credit The Health Coverage Tax Credit is a tax credit that pays 72.5 percent of qualified health insurance premiums for eligible individuals and their families. The HCTC acts as partial reimbursement for premiums paid for qualified health insurance coverage and can now be claimed for qualified coverage through 2019. Eligibility

You may be eligible to elect the HCTC only if you are one of the following:

• An eligible trade adjustment assistance recipient, alternative TAA recipient or reemployment TAA recipient,

• An eligible Pension Benefit Guaranty Corporation payee, or

• The family member of an eligible TAA, ATAA, or RTAA recipient or PBGC payee who is deceased or who finalized a divorce with you.

You are not eligible for the HCTC if you:

• Can be claimed as a dependent on another person’s federal income tax return or

• Are enrolled in Medicare, Medicaid, the Children’s Health Insurance Program, or the Federal Employees Health Benefits Program or are eligible to receive benefits under the U.S. military health system (TRICARE)

Qualifying Health Insurance Coverage The HCTC program does not provide health insurance coverage. You will need to have or obtain qualified health insurance coverage. All plans that were qualified for the HCTC in 2013 qualify for the HCTC through 2019. This includes COBRA or spousal coverage if the employer, or former employer, did not pay 50 percent or more of the cost of coverage. Individual (private and non-group) health insurance that you purchase for yourself or your family from an insurance company, agent, or broker are also included. A qualified health plan offered through a Health Insurance Marketplace is not qualified coverage for the HCTC for 2016 and 2017. If you are eligible to claim the Health Coverage Tax Credit and enrolled in Marketplace coverage for 2016 and 2017, see our questions and answers about qualifying coverage for more information.