I am using Turbo Tax to prepare my 2006 taxes. I paid in about $300 in Federal income tax. I had a baby last year as well. After I was done preparing my taxes, it said I was getting a refund of $1600! Is this possible? And is it because of the Child Credit?
2007-01-18 08:11:25 · 4 answers · asked by arfiegel 2 in Business & Finance ➔ Taxes ➔ United States
I only made about $10,000 last year, so I qualified for the EIC. I have amounts listed under the EIC and Child tax credit.
2007-01-18 10:03:36 · update #1
Definitely possible. The child tax credit can reduce your income tax to zero. The Earned Income Credit can give you back much more than you paid in. Actually, with $10,000 income and one child, if the whole $10,000 was earned income from your job, I'd have expected the EIC to be somewhat higher than that. Check over all your numbers....
Good luck.
2007-01-18 16:12:52 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
I'd have to see your return to make sure it is accurate, but it is possible. It could be because of the additional child credit and/or the earned income credit.
Look at page 2 of the Form 1040 under the credits and under the payments sections. See what credits and payments are listed. Also, look at the supporting schedules to make sure everything is accurate.
But, yes, it is possible.
2007-01-18 16:15:28 · answer #2 · answered by Take Responsibility 2 · 1⤊ 0⤋
The amount can be the child tax credit or earned income credit or both so yes it is possible.
You should print the return and see which line it is on.
2007-01-18 16:15:27 · answer #3 · answered by Nusha 5 · 1⤊ 0⤋
yes the child tax credit is $1,000 per child
2007-01-18 16:15:27 · answer #4 · answered by unan1m0us 5 · 1⤊ 0⤋