Question

Assume line 12a tax was $500 and work your way through the form assuming either a $2,000 child tax credit or a $2,000 EIC. Assume zero withholdings

	Child tax credit	EIC
Line 20, amount you overpaid (potential refund)

See form 1040 page 2. You will see child tax credit on line 13a and the earned income credit (EIC) on line 18a.

Why are these on different locations on the form and not right next to each other? also search for the word credit on the instructions to Form 1040)

Answer 1

Child tax credit and earned income credit (EIC) are on different locations on the form and not right next to each other because Child tax credit is a non refundable cedit whereas EIC is a refundable credit.

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