When I did her taxes I had only reported the rent she paid Jan - May (5 months - but still the software calculated the credit). She did end renting a different place at the end of August, that I didn't report (didn't have the landlords info). When she received the letter from the State, I told her to call and let them know - my mistake, I missed reporting the last 4 months. The guy she spoke with said it's because she didn't make enough to qualify for this tax credit. Now they want her to sign an Installment Agreement to pay back the $504. I can't find anywhere where it states there's a minimum that needs to be made to qualify for that credit. She doesn't receive any cash from the state (I do believe she was receiving food stamps for a bit).
