How do I track estimated tax credits
Many people can take advantage of tax credits to reduce their income tax. Some of the more commonly used credits include the Dependent Care Credit, Lifetime Learning Credit, and the Earned Income Credit. To learn more about these and other credits and to see if you might be eligible, visit the IRS website and look for IRS Publication 17, Tax Guide for Individuals, chapters 31 through 38.
You can also track estimates of your tax credits in the Tax Planner.
1.Click the Planning tab.
2.Click the Tax Center button.
3.Click Show Tax Planner.
4. In the list in the left, click Other Taxes, Credits.
5. In the Alternative Minimum Tax area, in the Credits field, enter your estimated tax credits.
Often you can roughly estimate these credits based on your last year's tax return. You can also consult a tax professional or IRS Form 2441 for more information.
The Tax Planner cannot track tax credits; for example, it doesn't automatically calculate child-care tax credits for you. If you expect to be eligible for a certain tax credit or credits (such as tax credits for child-care expenses), enter the information manually in the Tax Planner.