Effect of Credits and Deductions
on Income and Taxes

Reduction of Income
Reduction of Taxes
(Non-refundable Credit)
Refundable Credit
Education Expenses
  ♦  American Opportunity Credit
 
Note 1
Note 1
  ♦  Lifetime Learning Credit
 
Note 1
 
  ♦  Tuition and Fees Deduction
Note 1
 
 
  ♦  Student Loan Interest Deduction
Schedule 1
Line 33
 
 
 
Educator Expenses
  (Teacher / Classroom)
Schedule 1
Line 23
Max $250
 
 
Child and Dependent Care Expenses
  (Calculated on Form 2441)
 
Schedule 3
Line 49
 
Child Tax Credit / Credit for Other Dependents
  (Calculated with Pub 972 & Sched 8812)
 
Form 1040
Line 12a
 
Additional Child Tax Credit
  (Calculated on Sched 8812)
 
 
Form 1040
Line 17b
Earned Income Credit
 
 
Form 1040
Line 17a
Foreign Tax Credit
 
Schedule 3
Line 48
 
Residential Energy Credit   Go to separate page.
Retirement Savings Contributions Credit
  (Calculated on Form 8880)
 
Schedule 3
Line 51
 
All Itemized Deductions
  (Listed on Schedule A)
Form 1040
Line 8
 
 

Note 1: Education expenses are calculated on Form 8863. Depending on several varying factors, the credits and/or adjustments are spread among refundable credits, non-refundable credits, and adjustments to income. Fortunately for us, TaxSlayer Pro automatically performs the calculations and distributes the results into the appropriate forms.