Discussion:NOL Carryback and child tax credit
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(Difference between revisions)
| Revision as of 13:26, 8 July 2009 Taxguy1024 (Talk | contribs) (I'll make anothe) ← Previous diff |
Current revision FLAcct (Talk | contribs) (I have the same) |
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| {{ForumReplyPost|UserID=Taxguy1024|Date=8 July 2009|Text=I'll make another guess..........is it possible that either you have an incorrect birth date and there aren't three or more children that qualify....or the IRS has a wrong birth date and they don't show three qualifying children when there actually are??}} | {{ForumReplyPost|UserID=Taxguy1024|Date=8 July 2009|Text=I'll make another guess..........is it possible that either you have an incorrect birth date and there aren't three or more children that qualify....or the IRS has a wrong birth date and they don't show three qualifying children when there actually are??}} | ||
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| + | {{ForumReplyPost|UserID=FLAcct|Date=21 July 2009|Text=I have the same situation. I carried back a 2007 NOL to 2005 and prepared a 1040X. (It was too late to file a 1045.) The 1040X caculated a refund of $2,500, but my client only received a $1,500 refund. The $1,000 difference is the additional child tax credit caculated on the 1040X. Just as with CinSee, when I carried the NOL back, the tax was wiped out and the child tax credit was reduced to zero and the additional child tax credit became $1,000. I too am wondering if there is some special rule about NOLs and child tax credits that I am not aware of and would like to know before I start contacting the IRS.}} | ||
Current revision
Discussion Forum Index --> Advanced Tax Questions --> NOL Carryback and child tax credit
Discussion Forum Index --> Tax Questions --> NOL Carryback and child tax credit
| July 6, 2009 | |
| Is there a special rule about NOL carryback and child tax credits? I carried the NOL from 2008 back 5 years. The tax before NOL was $4314. child tax credit was $1,800. When I carried the NOL back, the tax was wiped out and the child tax credit was reduced to zero and the additional child tax credit became $1,800. My calculation (and my software's calculation) shows that they should have recieved $4,314. The IRS sent a notice stating the refund should only be $2,514. Is this correct? I have tried to research but can not find anything. I would like to be sure before I call the IRS on this. | |
Taxguy1024 (talk|edits) said: | 6 July 2009 |
| Ok....I'll make a guess here. Since the limitation on the refundable amount of the credit is the lesser of (1) the total amount of the credit, or (2) 10 percent of the earned income in excess of $10,000.........my guess is that the NOL carryback reduced the taxpayers' earned income far enough to wipe out the refundable portion of the credit.........but that's just a guess. | |
| July 6, 2009 | |
| The instructions reads as the wages are used if there is an nol.
I prepared an "amended" 2003 return to verify the numbers that went on the 1045 and it changed the child tax credit to the additional child tax credit and included it in the refund. I appreciate the guess. Anyone else? | |
Taxguy1024 (talk|edits) said: | 8 July 2009 |
| I'll make another guess..........is it possible that either you have an incorrect birth date and there aren't three or more children that qualify....or the IRS has a wrong birth date and they don't show three qualifying children when there actually are?? | |
| 21 July 2009 | |
| I have the same situation. I carried back a 2007 NOL to 2005 and prepared a 1040X. (It was too late to file a 1045.) The 1040X caculated a refund of $2,500, but my client only received a $1,500 refund. The $1,000 difference is the additional child tax credit caculated on the 1040X. Just as with CinSee, when I carried the NOL back, the tax was wiped out and the child tax credit was reduced to zero and the additional child tax credit became $1,000. I too am wondering if there is some special rule about NOLs and child tax credits that I am not aware of and would like to know before I start contacting the IRS. | |
