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Claiming the American Opportunity Tax Credit For tax year 2023, the credit begins to phase out for: Single taxpayers who have adjusted gross income between $80,000 and $90,000. Joint tax filers when adjusted gross income is between $160,000 and $180,000.
The foreign tax credit is a U.S. tax credit for income tax paid to other countries. The general objective is to help taxpayers avoid double taxation on foreign income. Taxpayers can deduct the foreign income tax they paid or claim those taxes as a foreign tax credit.
The AOTC can only be used for undergraduate expenses, while the Lifetime Learning Credit is more flexible. The AOTC can only be claimed for four tax years; the Lifetime Learning Credit can be claimed an unlimited number of times.
File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.
To claim AOTC, you must file a federal tax return, complete the Form 8863 and attach the completed form to your Form 1040 or Form 1040A. Use the information on the Form 1098-T Tuition Statement, received from the educational institution the student attended.
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What are the income limits for LLC? For tax year 2023, the amount of your LLC is gradually reduced (phased out) if your MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cant claim the credit if your MAGI is $90,000 or more ($180,000 or more if you file a joint return).

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