Amish and the ACTC

gabletax · ‎12-06-2019

Some Amish accept CTC to the point where it zeroes out tax liability, but will not accept ACTC, which can potentially refund money they have not paid in. Clicking the "Not qualified for CTC" box on the Info Worksheet cancels both CTC and ACTC plus flips the dependent to ODC, so doing so is not a solution to accepting CTC but not ACTC. Is there a way in ProSeries to cancel ACTC (refundable) while keeping CTC (zeroing out the tax)?

TaxGuyBill · ‎12-06-2019

I suspect the only way to do that would be to override the Additional Child Tax to $0.

I don't have any clients in this situation, but I also suspect the IRS may send the taxpayer a notice saying their tax return is wrong and try to make the taxpayer take the Additional Child Tax Credit.

Personally, I would suggest the client file the tax return properly by claiming the Additional Child Tax credit, but then they can donate it back to the government if they do not want to keep that part of the credit.

https://fiscal.treasury.gov/public/gifts-to-government.html

https://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm#DebtFinance

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gabletax · ‎12-06-2019

Thank you, Bill! Yes to the IRS letter. Yes to donating it back. Have experienced both. But there are more than a few that don't want to touch it even long enough to donate it back! So I asked in hopes there was a cleaner way to solve it than overriding. I'll just keep overriding.

gabletax · ‎12-06-2019

Oh yes, another thing I've done is have it applied to next year, and each year it keeps accumulating in their IRS's savings account until maybe some year they sell the farm and can use it all up. Not sure what happens if they retire, stop filing, and still haven't used it as a payment.