22.7 Tax Credits

After applying the Tax Table or Tax Computation Worksheet to get your 2012 regular tax liability, you may be able to reduce that liability as well as AMT liability (23.1) by claiming tax credits. The child tax credit, the dependent care credit, earned income credit, adoption credit, credit for retirement savings contributions, residential energy credit, alternative fuel vehicle credit, health insurance credit, and mortgage interest credit are discussed in Chapter 25. The education tax credits are discussed in Chapter 33. The credit for the elderly is discussed in Chapter 34 and the foreign tax credit in Chapter 36. The business tax credits are discussed in Chapter 40. The credit for prior year AMT liability is discussed at 23.5.

If you worked for more than one employer in 2012 and Social Security taxes of more than $4,624.20 were withheld from your wages, the excess may be claimed as a credit on Line 69 in the “Payments” section of Form 1040 (26.10).