Thanks for the help.
How about this idea: I have a daughter in college, (20 years old) but we make too much (barely) to claim the education credit, which would have been $2500. I understand this is $2500 that would have directly reduced my tax bill, but that still doesn't explain (to me) why I owed so much more BEFORE the credit. Anyway, what if I removed her as a dependent and she did her own taxes? I would lose $500 for her on my form, but would she be able to claim the education credit? How much of that is refundable beyond zero? I read 40%, is that correct?
What ramifications would that have beyond this year?
