[I'm, Ron Burgundy?]

Can someone please help me come up up with a mnemonic to differentiate Personal Tax Credits vs. Refundable Credits?

Personal Tax Credits:

Child and Dependent Care Credit

Elderly and Permanently Disabled Credit

Education Credits – Lifetime Learning Credit

Retirement Savings Contribution Credit

Foreign Tax Credit

General Business Credit

Refundable Credits:

Child Tax Credit (limited refund)

Earned Income Credit

Withholding Taxes (W-2)

Excess Social Security paid

Long-Term Unused Minimum Tax Credit

American Opportunity Credit (40% refundable)

Making Work Pay Credit

Adoption Credit

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[Anonymous]

better yet, how do you memorize all the technical calculations for basis in partnerships and c corps and s corps????

[Anonymous]

better yet, how do you memorize all the technical calculations for basis in partnerships and c corps and s corps????

[barelystayingsane]

First of all, the adoption credit was only refundable in 2010 and 2011, so move that to your personal credit list. Second, I'm pretty sure the Making Work Pay Credit was only around for 2009 and 2010, so take that off your list altogether. Third, a couple of those refundable credits are just common sense to remember. Obviously, if taxes have already been withheld, you're not going to have to pay them again, so they'll be credited against your total tax liability as having already been paid. Same goes for excess Social Security (although you should know the “two or more employers” rule). The Earned Income Credit is easy to remember as a refundable credit, because politicians are always arguing about whether or not it's a form of welfare. That really leaves three refundable credits to memorize. Just memorize that list and if the exam asks you about a credit that's not in that list, then chances are it's a personal credit.

[barelystayingsane]

First of all, the adoption credit was only refundable in 2010 and 2011, so move that to your personal credit list. Second, I'm pretty sure the Making Work Pay Credit was only around for 2009 and 2010, so take that off your list altogether. Third, a couple of those refundable credits are just common sense to remember. Obviously, if taxes have already been withheld, you're not going to have to pay them again, so they'll be credited against your total tax liability as having already been paid. Same goes for excess Social Security (although you should know the “two or more employers” rule). The Earned Income Credit is easy to remember as a refundable credit, because politicians are always arguing about whether or not it's a form of welfare. That really leaves three refundable credits to memorize. Just memorize that list and if the exam asks you about a credit that's not in that list, then chances are it's a personal credit.

[I'm, Ron Burgundy?]

@barelystayingsane,

Much appreciated.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[I'm, Ron Burgundy?]

@barelystayingsane,

Much appreciated.

"If you're going through hell, keep going"
- Winston Churchill

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed."
- Michael Jordan

BEC: (54), (72), 80 (losing credit on 02/02/15 - nervous)
AUD: 78
REG: (74), 91
FAR: (71)

[Author]

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