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Dependent Care Credit Rules & Guidelines – Paul Gaulkin CPA

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A tax credit is available for taxpayers who have incurred employment related expenses for the care of a qualifying individual. The amount of credit available is equal to an applicable percentage of the expenses paid by the taxpayer during the taxable year. Credit Filing Requirements In order to qualify for the dependent care credit, a taxpayer must have incurred employment related expenses for the care of a qualifying individual who resides in the taxpayer’s household for more than one half … Read more

Alcohol Fuel Credit Definition & Instructions – Paul Gaulkin CPA

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To help foster the production of gasoline, an income tax credit for alcohol and alcohol blended rules applies to fuel sales and uses. There is basically a 60 cent per gallon credit for alcohol of at least 190 proof and 40 cent per gallon credit for alcohol of at least 150 but less than 190 proof for persons producing alcohol rules or using them in a trade or business. Alcohol Fuel Credit Reduction The amount of the allowable tax credit … Read more

Foreign Tax Credit Definition & Implementation – Paul Gaulkin CPA

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The foreign tax credit is a credit that is available to individuals and corporations through the IRS which helps alleviate taxation by the United States for certain income taxes of foreign countries. This credit basically helps individuals and corporation avoid double taxation to a certain degree when they derive income from two taxing jurisdictions. How Double Taxation Works A United States citizen is subject to tax on their worldwide income simply because they are a citizen of the United States. … Read more

Health Insurance Cost Credit

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The health insurance cost credit was designed to help those who have lost their jobs or have had their hours of work drastically reduced, afford healthcare. If you have been laid off or your employer has cut your hours due to outsourcing your work overseas, you may be eligible for the health insurance cost credit. In the case that you qualify for the health insurance cost credit, the credit will actually pay 72.5% of qualified health insurance premiums for eligible … Read more