Miguel and Katrina have 2 children under age 17, have earned income of $16,000, and pay $1,836 in Social Security tax. Their tax liability is $1,050 before the child credit.
a. What amount can they claim as a child credit, and what portion of the credit is refundable?
b. Assume the same facts as in part a, except that Miguel and Katrina have 3 children under age 17 and are not eligible for the earned income credit. Their tax liability is $800 before the child credit. What amount can they claim as a child credit, and what portion of the credit is refundable?