Child Care Tax Credit

• If you paid someone to care for your child or a dependent, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. The credit can be up to 35 percent of your qualifying expenses, depending upon your adjusted gross income. The IRS form to be used for claiming the deduction is 2441.
  
  

Nonrefundable Education Credit

• You can claim up to $2,500 credit for qualified education expenses under the American opportunity tax credit program. This credit equals 100 percent of the first $2,000 and 25 percent of the next $2,000 of qualified expenses paid for each eligible student. Also, under the lifetime credit program you can claim 20 percent of qualified expenses paid, per student, up to a maximum of $10,000, using IRS form 8863
  
  

Retirement Savings Contributions Credit

• if you contribute to an individual retirement fund, or if you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be eligible for the retirement savings tax credit. The credit applies to a single person with income up to $27,750, to a head of household with income up to $41,625, or to a married couple filing jointly with incomes up to $55,500. Get IRS form 8880 for this credit.
  
  

Child Tax Credit

• If you have a child dependent under 17, depending on your income, you might be eligible to file for the child tax credit, up to $1,000 per child. For filing a joint return, the phase-out of the credit starts at an income of $110,000. When filing separately , it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. The applicable IRS form is 8812.
  
  

Credit for Elderly or the Disabled

• If you were 65 or older at the end of last year you may be eligible for the tax credit for the elderly. If are under 65, but are retired on permanent and total disability, and you received disability income that was taxable the previous year, and you had not reached the mandatory retirement age at the beginning of the current year, you can claim credit for disability. Use IRS Schedule R on1040A or 1040.
  
  

Other Credits

• Other credits that can be adjusted from gross income include: foreign tax credit (form 1116); adoption credit (form 8839); residential energy credit (form 5695); general business credit (form 3800); prior year minimum tax credit (form 8801); alternative motor vehicle credit (form 8910); and qualified plug-in electric and electric vehicle credit (form 8834).