#tax-credits
Federal and state tax credits to reduce your tax bill dollar for dollar
File a federal return once gross income hits your threshold, or with $400 of self-employment earnings. Filing anyway can recover withholding and credits.
Scholarship money spent on tuition and required books is tax-free under Section 117; room, board, and service-conditioned stipends are taxable income.
One road game in California can trigger a filing: duty days decide each state's slice of your pay, resident credits cap double tax, and travel logs win audits.
Georgia's 30% film credit is transferable, so brokers buy it near 90 cents on the dollar — refundable credits in states like New Mexico pay cash instead.
IRS rules: the AOTC pays up to $2,500 per undergrad and is 40% refundable; the LLC pays up to $2,000 per return for grad school and skills courses.
Federal child credit is $2,200 per kid in 2026, and 17 states plus D.C. stack their own on top — up to $3,200 in Colorado, $1,750 per child in Minnesota.
Pay one sitter $3,000+ in 2026 and IRS rules make you a household employer owing FICA plus a Schedule H filing unless the under-18 student exemption applies.
IRS Section 2503(e) excludes direct tuition and medical payments from gift tax entirely — no cap, no Form 709, and room and board don't qualify.
Supporting a parent can unlock a $500 IRS dependent credit, head-of-household status, plus medical and care deductions.
IRS Form 1099-Q Box 1 is your total 529 distribution, Box 2 the possibly taxable earnings, Box 3 tax-free basis — and tax follows the recipient's SSN.
Oregon's QJCTC pays $1,000 per net new job, up to $10,000, in seven industries — but 2026 applications close October 31 and certification comes first.
Hawaii's Act 182 opens 7-year enterprise zone tax breaks — full GET exemption plus an 80% income tax credit — to retail, health care, and IT firms in-zone.
