HIVE TAX AI
Lotus Li
Lotus Li is a CPA who has transformed 20 years of professional experience into building products with a mission to simplifying everyone’s tax journey. She is passionate about bringing cutting-edge AI into the world of tax and finance and is deeply immersed in designing, building, and launching innovative AI-powered tax solutions.
Is there a credit for installing energy-efficient appliances or solar panels in my home?
Yes! You can claim a 30% federal tax credit for energy-efficient appliances (up to $1,200/year) and 30% for solar panels (no annual limit) under IRS credits 25C and 25D.
How does the Adoption Tax Credit work, and what is the maximum amount?
The Adoption Tax Credit allows adoptive parents to claim up to $16,810 per child in 2024 for qualified expenses like legal fees and travel; it’s nonrefundable but can be carried forward for up to five years.
Can I claim the Lifetime Learning Credit for continuing education courses?
Yes, you can claim the Lifetime Learning Credit for continuing education courses—including non-degree, part-time, or professional development classes—at eligible institutions, with a maximum annual credit of $2,000 per tax return.
How do education tax credits like the American Opportunity Credit work?
The American Opportunity Tax Credit (AOTC) offers up to $2,500 per eligible student for qualified college expenses, with up to $1,000 refundable—even if you owe no tax.
Can I claim the Child and Dependent Care Credit for daycare costs?
Yes, you can claim the Child and Dependent Care Credit for daycare costs if the care enables you to work or look for work and meets IRS eligibility rules.
What is the Child Tax Credit amount for 2025?
For 2025, the Child Tax Credit is $2,000 per qualifying child under 17, with up to $1,700 refundable as the Additional Child Tax Credit.
Are commuting costs deductible for remote workers returning to the office?
Commuting costs for remote workers returning to the office are not tax-deductible, as they are considered personal expenses under IRS rules.
Can I deduct expenses for caring for an elderly parent at home?
You may be able to deduct expenses for caring for an elderly parent at home if they qualify as your dependent and the expenses exceed 7.5% of your adjusted gross income; you might also qualify for the Dependent Care Credit or claim your parent as a dependent under certain conditions.
Is mortgage insurance premium (PMI) deductible this year?
Mortgage insurance premiums (PMI) are not deductible for the 2024 tax year, as the deduction expired at the end of 2021. It is not available for subsequent tax years.
Can I deduct expenses for adopting a child in 2025?
In 2025, adoption expenses can be claimed through the adoption tax credit, offering up to $17,280 per child, subject to income limitations. This credit reduces your tax liability dollar-for-dollar.