Is an education tax credit (the Lifetime Learning one) good towards self-employment taxes or is the credit only good towards lowering income taxes owed?
2007-02-15 22:48:45 · 3 answers · asked by Emma S 2 in Business & Finance ➔ Taxes ➔ United States
The only credits that could help with self-employment taxes are the refundable credits. The non-refundable credits, including the Lifetime Learning credit, can only reduce your income taxes to zero, not beyond. Earned Income Credit and Additional Child Tax Credit are refundable credits. Also, this year only, the credit for telephone excise tax.
2007-02-16 13:13:42 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Some credits are applied to your income tax liability only. Self employment taxes are added on after the credit is taken. Education credits are an example of one of those.
2007-02-15 22:59:42 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Only if you made enough to qualify for the Addtional Child Tax Credit and didn't use the entire Child Tax Credit. The child tax credit can only offset income taxes. The additional child tax credit can offset other taxes.
2016-05-24 06:22:02 · answer #3 · answered by ? 4 · 0⤊ 0⤋