Anyone can help with this, please?
what is the link between the dividends income and ACTC refundable? A client has five kids under 17 earning 125,000 as wages. He gets a full $7k refundable CTC however as soon as I enter his dividend of $50k, the ACTC starts going down.
Thank you in advance.
Ahhh...I see what you mean. I just tested it on a return and added dividend income and it started wiping out the ACTC and completely eliminated at at a certain point.
Im using ProSeries but Im not seeing a worksheet or schedule anywhere that really walks through the computation.
Theres got to be a worksheet in the actual 1040 instructions somewhere.....Im not going digging though, sorry!
Does the regular CTC change as the ACTC changes?
Ive been tinkering around with my daughters return, shes only got 2 kids and she gets 2342 in CTC and 1658 in ACTC (total of 4000)
When I add 50k in dividends, her CTC goes up to 4000 and her ACTC goes down to zero.
So if your CTC is maxed out, you wont get an ACTC.