Adoption Tax Credit and Other Common Tax Credits: Qualifying Costs, Eligibility, and Exclusions

Adoption Tax Credit and Other Common Tax Credits

Prev Question Next Question

Question

An adoption tax credit of up to $11650 is available for the qualifying costs of adopting child under age 18. Only taxpayers with AGI under $17,730 are eligible for the adoption tax credit. Here are some other common tax credits. Which of the following is/are Not out of those?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

B

Out of the four tax credits mentioned in the question, three are actual tax credits that exist in the US tax code, while one is not. Here's a breakdown of each tax credit:

A. Credit for the elderly or the disabled - This is an actual tax credit that exists in the US tax code. The credit is available to taxpayers who are either 65 years or older or retired on permanent and total disability. The amount of the credit varies depending on income, filing status, and other factors.

B. National tax credit - This is not an actual tax credit that exists in the US tax code. There is no such thing as a "national tax credit."

C. Credit for prior year minimum tax - This is an actual tax credit that exists in the US tax code. The credit is available to taxpayers who paid the Alternative Minimum Tax (AMT) in a previous year and are now able to reduce their tax liability using the credit.

D. Credit for qualified electric vehicle - This is an actual tax credit that exists in the US tax code. The credit is available to taxpayers who purchase a new qualified electric vehicle, and the amount of the credit varies depending on the make and model of the vehicle.

Therefore, the correct answer to the question is B. National tax credit. It is not an actual tax credit that exists in the US tax code.

Prev Question Next Question