Earned Income Tax Credit

This is a refundable credit for low-income working individuals and families. Income and family size determine amount of EITC. When EITC exceeds amount of taxes owed, it results in a tax refund to those who claim and qualify for credit.

Child and Dependent Care Credit

This is for expenses paid for care of children under age 13, or for a disabled spouse or dependent, to enable taxpayer to work. There is a limit to amount of qualifying expenses. The credit is a percentage of those qualifying expenses.

Adoption Credit

Adoptive parents can take a tax credit of up to $10,390 for qualifying expenses paid to adopt an eligible child. A credit of up to $10,390 may be allowed for adoption of a child with special needs even if you do not have any qualifying expenses. For more information, see Pub. 968, Tax Benefits for Adoption.

Credit for Elderly and Disabled

The deferral covers active duty members of military services — Army, Navy, Air Force, Marine Corps and Coast Guard — and commissioned officers of uniformed services — Public Health Service and National Oceanic and Atmospheric Administration. Reservists must be placed on active duty to qualify. National Guard personnel not serving in a “federalized” status — that is, called to active duty specifically by president of United States — are not covered.

The deferral applies to taxes that fall due before or during military service, and extends payment deadline to six months (180 days) after military service ends. No interest or penalty accrues during deferral period.

The deferral is not automatic. A taxpayer must apply for it. When applying, taxpayer must show how military service affected taxpayer's ability to pay. A taxpayer must also have received a notice of tax due, or have an installment agreement with IRS, before applying for deferral.