Replies

One may actually receive credits in excess of the taxes paid. The earned income credit is a refundable credit and the child tax credit is refundable for some taxpayers. Under Code Sec. 24(d)(1),the child tax credit is refundable to the extent of the lesser of (1) the tentative child credit that was not allowed because it did not exceed the tax liability or (2) 10 percent of the amount by which the taxpayer's earned income exceeds $10,000. A different rule applies if the taxpayer has three or more qualifying children.

12 posted on 05/30/2003 8:34:03 AM PDT by TheCPA (Co-author of Tax Stategies for the Self-Employed)

Does this cover dependent children (college students) living at home over the age of 17?

30 posted on 05/30/2003 9:01:02 AM PDT by stanz (Those who don't believe in evolution should go jump off the flat edge of the Earth.)

Thus the reason you're a CPA and I'm not (and a good thing!). 8^)

63 posted on 05/30/2003 12:12:38 PM PDT by LoneGOPinCT (From the Land of Liberalty. All we are saying is give pizza chants.)

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