Reply #17: EIC and the child credit are different, which is why I didn't use it [View All]

[jmowreader]

EIC is intended to bring you above the poverty line. I don't remember what the cutoff is, but it's very low--and in the New Bush Era, claiming EIC is a quick way to be audited if the rest of your return isn't squeaky clean.

The child credit starts to be limited when your AGI is a bit over $100,000, and all one needs to do to claim that is have children. It doesn't seem to be an audit magnet--now that all children must have a social security number, it's pretty easy to prove that they exist.

Both are refundable credits.

Deductions reduce your taxable income. Credits reduce your tax.