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IRS.gov Website
Publication 17
taxmap/pub17/p17-190.htm#en_us_publink1000174888

Refundable Credits(p251)

rule
The credits discussed in this part of the chapter are treated as payments of tax. If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you.
taxmap/pub17/p17-190.htm#en_us_publink1000174965

Credit for Tax on Undistributed Capital Gain(p251)

rule
You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you didn't actually receive them. If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any.
taxmap/pub17/p17-190.htm#en_us_publink1000280459

How to take the credit.(p251)

rule
To take the credit, attach Copy B of Form 2439 to your Form 1040. Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 73, and check box a.
taxmap/pub17/p17-190.htm#en_us_publink1000261333

More information.(p251)

rule
See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains.
taxmap/pub17/p17-190.htm#en_us_publink100036060

Health Coverage Tax Credit(p251)

rule
EIC
Relatively few people are eligible for the Health Coverage Tax Credit (HCTC). See the Instructions for Form 8885, Health Coverage Tax Credit, to determine whether you can claim the credit.
You can elect to take the health coverage tax credit only if (a) you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) payee (defined later); or you were a qualified family member of one of these individuals who passed away or finalized a divorce with you, (b) you can't be claimed as a dependent on someone else's 2017 tax return, and (c) you have met all of the conditions listed on line 1 of Form 8885. If you can’t be claimed as a dependent on someone else's 2017 tax return, complete Form 8885, Part I, to see if you are eligible to take this credit.
EIC
Even if you can’t claim the HCTC on your income tax return, you must still file Form 8885 to elect the HCTC for any months you participated in the advance monthly payment program.
taxmap/pub17/p17-190.htm#en_us_publink100036063

TAA recipient.(p251)

rule
You were an eligible TAA recipient as of the first day of the month if, for any day in that month or the prior month, you:
taxmap/pub17/p17-190.htm#en_us_publink100036064

Example.(p251)

You received a trade readjustment allowance for January 2017. You were an eligible TAA recipient as of the first day of January and February.
taxmap/pub17/p17-190.htm#en_us_publink100036065

ATAA recipient.(p251)

rule
You were an eligible ATAA recipient as of the first day of the month if, for that month or the prior month, you received benefits under an ATAA program for older workers established by the Department of Labor.
taxmap/pub17/p17-190.htm#en_us_publink100036066

Example.(p251)

You received benefits under an ATAA program for older workers for October 2017. The program was established by the Department of Labor. You were an eligible ATAA recipient as of the first day of October and November.
taxmap/pub17/p17-190.htm#en_us_publink100036067

RTAA recipient.(p252)

rule
You were an eligible RTAA recipient as of the first day of the month if, for that month or the prior month, you received benefits under an RTAA program for older workers established by the Department of Labor.
taxmap/pub17/p17-190.htm#en_us_publink100036068

PBGC payee.(p252)

rule
You were an eligible PBGC payee as of the first day of the month, if both of the following apply.
  1. You were age 55 to 65 and not enrolled in Medicare as of the first day of the month.
  2. You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA).
If you received a lump‐sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump‐sum payment.
taxmap/pub17/p17-190.htm#en_us_publink100036069

How to take the credit.(p252)

rule
The HCTC is an election. If you are eligible for the credit, you must elect the HCTC to receive the benefit of the HCTC. You make your election by checking the box on line 1 of Form 8885 for the first eligible coverage month you are electing to take the HCTC and all boxes on line 1 for each eligible coverage month after the election month. Once you elect to take the HCTC for a month in 2017, the election to take the HCTC applies to all subsequent eligible coverage months in 2017. The election doesn't apply to any month for which you aren't eligible to take the HCTC.
For 2017, the election must be made not later than the due date (including extensions) of your tax return.
taxmap/pub17/p17-190.htm#en_us_publink100036071

More information.(p252)

rule
For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer‐sponsored health insurance plans, see Pub. 502 and the Instructions for Form 8885.
taxmap/pub17/p17-190.htm#en_us_publink1000174990

Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld(p252)

rule
Most employers must withhold social security tax from your wages. If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax.
If you worked for two or more employers in 2017, you may have had too much social security tax withheld from your pay. If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6.2% rate. You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6.2% rate when figuring if excess tier 1 RRTA tax was withheld; don't include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1.45%) or the Additional Medicare Tax rate (0.9%). The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2017.
Type of taxMaximum
wages
subject to tax
Maximum tax
that should
have been
withheld
Social security or RRTA tier 1$127,200$7,886.40
RRTA tier 2$ 94,500$4,630.50
EIC
All wages are subject to Medicare tax withholding.
Deposit
Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Be sure to attach a copy of all of your W-2 forms. Use Worksheet 3-3 in Pub. 505, Tax Withholding and Estimated Tax, to help you figure the excess amount.
taxmap/pub17/p17-190.htm#en_us_publink1000174994

Employer's error.(p252)

rule
If any one employer withheld too much social security or tier 1 RRTA tax, you can't take the excess as a credit against your income tax. The employer should adjust the tax for you. If the employer doesn't adjust the overcollection, you can file a claim for refund using Form 843.
taxmap/pub17/p17-190.htm#en_us_publink1000174995

Joint return.(p252)

rule
If you are filing a joint return, you can't add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Figure the withholding separately for you and your spouse to determine if either of you has excess withholding.
taxmap/pub17/p17-190.htm#en_us_publink1000174996

How to figure the credit if you didn't work for a railroad.(p252)

rule
If you didn't work for a railroad during 2017, figure the credit as follows:
1. Add all social security tax withheld (but not more than $7,886 for each employer). Enter the total here
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"
3. Add lines 1 and 2. If $7,886 or less, stop here. You can't take
the credit
4. Social security tax limit 7,886
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46) $
taxmap/pub17/p17-190.htm#en_us_publink1000174998

Example.(p252)

You are married and file a joint return with your spouse who had no gross income in 2017. During 2017, you worked for the Brown Technology Company and earned $75,200 in wages. Social security tax of $4,662 was withheld. You also worked for another employer in 2017 and earned $55,000 in wages. $3,410 of social security tax was withheld from these wages. Because you worked for more than one employer and your total wages were more than $127,200, you can take a credit of $186 (($4,662 + $3,410) - $7,886) for the excess social security tax withheld.
1. Add all social security tax withheld (but not more than $7,886 for each employer). Enter the total here$8,072
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"   -0- 
3. Add lines 1 and 2. If $7,886 or less, stop here. You can't take the credit  8,072
4. Social security tax limit  7,886
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46)  $186
taxmap/pub17/p17-190.htm#en_us_publink1000175000

How to figure the credit if you worked for a railroad.(p252)

rule
If you were a railroad employee at any time during 2017, figure the credit as follows:
1. Add all social security and tier 1 RRTA tax withheld at the 6.2% rate (but not more than $7,886 for each employer). Enter the total here
2. Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"
3. Add lines 1 and 2. If $7,886 or less, stop here. You can't take
the credit
4. Social security and tier 1 RRTA
tax limit
7,886
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46)$
taxmap/pub17/p17-190.htm#en_us_publink1000175002

How to take the credit.(p252)

rule
Enter the credit on Form 1040, line 71, or include it in the total for Form 1040A, line 46.
taxmap/pub17/p17-190.htm#en_us_publink1000260898

More information.(p252)

rule
For more information on the credit, see Pub. 505.