1040 Preparation and Planning 11: Tax Credits (2025)

Author: Barbara Weltman, Greg White

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This two-hour CPE course, which is the 11th in the 1040 Preparation and Planning series, covers types of tax credits, including refundable and nonrefundable tax credits; figuring each type of personal tax credit; which credits are reported directly on the return and which must first be reported on Schedule 3 of Form 1040 and 1040-SR; and business tax credits.

Tax developments reflected in this course include the extensive changes effective for 2024 that were created by the Consolidated Appropriations Act, 2023 (including SECURE Act 2.0), the Inflation Reduction Act of 2022, and other tax legislation, as well as IRS pronouncements and court decisions. They impact 2024 tax year returns that will be filed during the 2025 filing season and refund opportunities for earlier years; as well as point the way to strategic planning in 2025 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2024 tax returns for the 2025 filing season.

Publication Date: September 2024

Topics Covered

• Overview of Tax Credits
• Commonly Used Tax Credits
• Refundable Tax Credits
• Reporting Tax Credits on the Return
• Premium Tax Credit
• Earned Income Credit
• Income Limits—Unearned Income Limit
• Child and Dependent Care Expenses
• Employment-Related Expenses
• Qualifying Child
• Credit for Child and Dependent Care Expenses
• Child Tax Credit
• American Opportunity and Lifetime Learning Credits
• Adoption Credit
• Retirement Savings Contributions Credit (Saver's Credit)
• Energy Credits for Homeowners
• Residential Clean Energy Credit
• Clean Vehicle Credits (EV's)
• Mortgage Interest Credit
• Minimum Tax Credit
• Credit for the Elderly for the Disabled
• Foreign Tax Credit
• General Business Credit
• Rehabilitation Credit
• Work Opportunity Credit
• Employer Credit for the FICA on Tips
• Tax Credit for Increasing Research Activities
• Low-income Housing Credit
• Disabled Access Credit
• Small Employer Pension Plan Startup Credit
• Auto-Enrollment Option in Retirement Plans Credit
• Other Retirement Plan-Related Credits
• Contributions Credit
• Business Energy Credits

Learning Objectives

• Identify how to distinguish between refundable and nonrefundable credits
• Explain how to figure each type of personal tax credit
• Determine where credits are reported on the tax return
• Identify business tax credits and understand the limitations under the general business credit
• Explain the concept of transferability
• Identify the maximum credit allowed by the American opportunity credit per year for the first 4 years of higher education
• Identify the tax credit that is claimed on Schedule 3

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None