Education Credit

[Earl]

Client files head of household. Low income. Has son 19 years of age who attended one semester of college last year. She claims son as dependent. Meets qualifications for education credits. Son did not have any income.

However, client does not have any tax liability due to low income and dependents. Am I correct in that she is not eligible for the Refundable Portion of credit since son is subject to kiddie tax.

[Edsel]

Try Filing Son

Don't have a good answer, but you might try filing a separate return for the son, such that he reports his investment income (and applies his parents' rate). Son should not claim himself as a dependent.

If the education credit is the new American thing instead of Lifetime thing, his mother should be able to receive the refundable credit.

[WhiteOleander]

She should receive the refundable portion of the credit.

[BP.]

Son did not have any income.

However, client does not have any tax liability due to low income and dependents.

Am I correct in that she is not eligible for the Refundable Portion of credit since son is subject to kiddie tax.

WIthout income, why would son be subject to kiddie tax?