Tax Preparer, New client discussion of Refundable Credits

Good morning. Thanks for contacting S&S Tax Services. This is Jonathan. How may I be of service for you today? Hi, Jonathan. My name is Timothy Jenkins. I'd like to schedule an appointment with you to have my taxes done, but I have a couple of questions first. Sure. I can answer general questions for you. My sister Terri and her daughter Lucy have been living with my wife and I for over a year. Lucy's 10 years old. When we file our tax return, will we be able to get all the credits and deductions that I hear about from my friends? My sister has medical issues and has been unable to work full time. Mr. Jenkins, to claim your niece as a qualifying child, there are two types of tax credits available when you file if you meet the eligibility requirements. Let me explain. A non-refundable credit can help eliminate any tax liability you have. If there's any excess left, that portion cannot be refunded to you. Then there's the refundable credit. This credit can do the same as non-refundable, but if there is any excess or you do not have a tax liability, those amounts can be refunded, increasing the amount of your refund. Hmm. I didn't know about both of those credits. How do I qualify for either one of them? Well, it's easier to discuss the eligibility requirements in person. So, let's schedule an appointment for you and your wife to come to my office to discuss the credits and see what you're eligible for. We can also review your W-2s and any other pertinent information. I will also email you a questionnaire I use with all my clients to complete prior to our appointment. Remember to bring your photo ID and Social Security cards for you and for anyone you might claim on your return. Oh, I can do that. No problem. Great. But first, I need to ask you some additional questions about your sister and your niece to gain a better understanding of the tax benefits that you may be eligible for. Okay. My wife and I have both received our W-2s and 1099s for the savings account we have at the bank. We rent, so we don't have a mortgage. What else will you need for my niece? I'll check with my sister about her Social Security cards, and we can bring ours. Well, in addition, I would need to know your sister's income to determine whether you can claim your sister or your niece on your return. If possible, having your sister available during our appointment would be helpful so she can answer additional questions. This sounds more complicated than I had heard. Why does it matter how much my sister made? She already told me she's not going to claim her daughter and that I can't. I know my wife and I have supported them for over a year now. I understand your concern, but I need to explore the big picture here. My job is to prepare a correct tax return. To do this, I need to ask probing questions and document the answers. After all, you wouldn't want the IRS sending you a letter a few months from now requesting additional information, would you? How did you put it that way? I do not want that. Okay. I'll discuss this with my wife and sister. It sounds like I called the right person for this job. Yes, especially when it comes to refundable credits. It's important to get it right the first time. I look forward to meeting everyone. Have a nice day.