A wide variety of tax credits may reduce income tax at the federal. and state levels. Some credits are available only to individuals, such as the child tax credit for each dependent child, American Opportunity Tax Credit for education expenses, or the Earned Income Tax Credit for low income wage earners. Some credits, such as the Work Opportunity Tax Credit, are available to businesses, including various special industry incentives. A few credits, such as the foreign tax credit, are available to all types of taxpayers.
A wide variety of tax credits may reduce income tax at the federal and state levels Some credits are available only to individuals such as the child tax credit for each dependent child American Opportunity Tax Credit for education expenses or the Earned Income Tax Credit for low income wage earners Some credits such as the Work Opportunity Tax Credit are available to businesses including various special industry incentives A few credits such as the foreign tax credit are available to all types of taxpayers