Know the questions to ask about refundable credits

 

Know the questions to ask to help your clients get the most out of education and child-related tax benefits. Ask each client all the questions every year. Family dynamics change and just because they qualified last year, doesn't mean they will qualify this year. Or things could have changed and this year they qualify. So, don't miss any tax savings or refundable credits for your clients.

Basics

  • Ask for the child's date of birth or verify it if you use a client intake sheet.
  • Ask how many months the child was in school if they’re over age 19 when determining whether the age requirement is met. Remember, the 5 months don't have to be consecutive.
  • Verify the relationship. If your client is not the parent, ask where the parents are and why the parents are not claiming the child. Explain the tiebreaker rules when necessary.
  • Ask how long the child lived in the same home as your client. Did anyone else live in the same home? Did the child live with anyone else for part of the year? Explain the tiebreaker rules when necessary.
  • Verify Social Security numbers, ATINs and ITINs.

Permanently and totally disabled

IRS defines permanently and totally disabled as:

  1. Not being able to engage in any substantial gainful activity because of a medically determinable physical or mental condition; and
  2. A physician must certify the condition has lasted or is expected to last continuously for at least 12 months or result in death.

To prove permanent and total disability, IRS asks for a letter from the child's doctor, other healthcare provider or any social service program or government agency verifying the child is permanently and totally disabled. If your client doesn't have this document, ask your client if they can get this letter if IRS asks.

Income

  • Ask questions to ensure the return includes all taxable income. Other than wages, do you have any other income such as interest, dividends or from running your own business that we haven't talked about?
  • See our EITC Schedule C and record reconstruction training for interview tips for self-employment income and for help on reconstructing business records.

Marital status

  • Don't assume the child is not married. Regardless of age, always ask. Are any of your children married?
  • Don't let your client tell you his or filing status. Ask the right questions. Are you married? When did you separate? Was it a legal separation or divorce? When did your spouse move out? See our tips for handling the most common errors and due diligence situations for more tips.

Support test

  • If the client is supporting a family on a small amount or limited income, ask probing questions. Did anyone else help support this child? Did you receive help from any government agency or social organization? Did you receive outside support for this child? Or did your child work or provide any of his or her own support?

Student status

  • Ask the right questions to determine whether the student can claim his or her own personal exemption or whether the student can be claimed as a dependent by your client. It is difficult to verify if dependent students filed their own returns and claimed their personal exemption. But warn your clients of the possible consequences when they are not sure if someone else claimed the exemption.
  • Ask how long the student attended a post-secondary school. Ask how many courses the student is taking? Ask what the school considers full-time. Verify the school term. Ask the student's enrollment status, undergraduate or graduate. If the student is taking graduate studies, ask when he or she started graduate studies.
  • Ask enough questions until you feel comfortable the student qualifies and let your clients know if the IRS audits them, they need to have documents supporting their claim. See the Form 866-H-AOC (also available in Spanish, Form 886-H-AOC- SP) and 866-H-AOC-MAX for examples of the documentation needed.

Don't forget!

Keep a copy of the document(s) necessary to meet your due diligence requirements if your clients claim Earned Income Tax Credit (EITC); Child Tax Credit (CTC), including Additional Child Tax Credit (ACTC); Credit for Other Dependents (ODC); American Opportunity Tax Credit (AOTC); and/or the head of household (HOH) filing status. You may also need to keep paper or scanned copies of any documents you rely on to determine eligibility or calculate the amount of the credit(s). Examples include Social Security cards, birth certificates, school records, business income and expense records and more.

More tips for interviews

Related topics

What other resources do we have for you?

Check out other refundable credits.

Page Last Reviewed or Updated: 27-Jan-2026