AOTC
The AOTC is up to a $2500 credit with $1000 refundable If qualified. here are rules for the refundable part.
You don't qualify for a refund if items 1 (a, b, or c), 2,
and 3 below apply to you.
1. You were:
a. Under age 18 at the end of 2022, or
b. Age 18 at the end of 2022 and your earned income (defined below) was less than one-half of
your support (defined below), or
c. Over age 18 and under age 24 at the end of 2022
and a full-time student (defined below) and your
earned income (defined below) was less than
one-half of your support (defined below).
2. At least one of your parents was alive at the end of
2022.
3. You are filing a return as single, head of household,
qualifying surviving spouse, or married filing separately for 2022
I have a client HOH, and ProSeries is putting $1000 of her credit as refundable (incorrectly). Her tax lability is high enough to get the full $2500 credit non refundable, so her bottom line would not change.
Do you think I should override to put credit in correct place, or just leave it, as bottom line doesn't change. My concern is the 8867
