How to List Federal Tax Credits on Income Taxes
- 1). Get a copy of Form 1040 from the IRS website. The tax filing Form 1040 lists all of the federal tax credits that are available to taxpayers. You can find the federal tax credits on page two of the form, under either "tax and credits" or "payments."
- 2). Research the federal tax credits. You cannot claim a federal credit on your taxes unless you qualify. For example, you can only qualify for the education credit if you or a dependent paid qualifying educational expenses for you, your spouse or a dependent to enroll in an eligible educational institution. The IRS publishes descriptions of federal tax credits and how to qualify on its website. You can also determine if you qualify for a tax credit based on the IRS instructions for Form 1040.
- 3). Complete applicable tax forms. Based on the federal tax credit you are applying for, the IRS may require you to complete additional worksheets or tax forms to compute the amount of your credit. For example, to claim the retirement savings contributions credit, you will have to complete and attach Form 8880. To claim residential energy credit, you must complete Form 5695. Follow the instructions for Form 1040 to accurately compute and report your tax credit.
- 4). Enter the amount of your credit on the appropriate line of Form 1040. You will only receive a tax credit if you compute the correct amount and enter it on the appropriate line. For example, to claim the first-time homebuyer credit, you must enter the amount of your credit on line 67 of Form 1040.
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