Question

1. briefly explain the credit. referred to form 8332, provide a self-investigation of this form and how does it work.

2. in a few words? explain, what does tax credits do in the tax returns in the benefit to the taxpayer, if actually qualify?

Answer 1

Form 8332 is the form custodial parents can to relate thier right to calim a child as a dependent to the non custodial parent.the form can be used for current or future tax years . additionally ,custodial parents can use tax form 8332 to revoke the release of this same right. 2) A credit is a tax benefit that provides more tax savings than a tax deduction as it directly reduces a tax payers bill dollar to dollar rather than just reducing the amount of income subject to taxes Atax credit can be either refundable or non refundable