Section 4: 22–32%R15
Individual Tax Credits and the AMT
Exam insight
Credits cut tax dollar-for-dollar, so whether a credit is refundable or not, plus its phaseouts, drives the final number on the return. The AMT runs alongside the regular tax as a second system that takes back some of the breaks the regular tax allowed.
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What AICPA wants you to know
- 1Distinguish refundable from nonrefundable credits
- 2Apply the child tax credit and credit for other dependents, including the 2025 phaseouts
- 3Apply the education credits (AOTC and lifetime learning) and child/dependent care credit
- 4Apply the earned income credit eligibility rules
- 5Compute alternative minimum taxable income and the AMT using the 2025 exemptions
- 6Identify common AMT preferences and adjustments