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I don't understand your numbers, which don't tell the whole story.
What exactly were you changing from your original filing? What's the source of additional credits that you think should be producing a $1219 refund? A little more information would help.

like i said, i live overseas, so i take the foreign earned income exclusion. for many years, this has left my taxable income at zero, so my taxes were very simple, and i always chose the simplest options since details (for instance, filing status) made no difference. a few months ago i got a letter from the irs telling me that i may have neglected to claim the additional child tax credit for 2001, and that i should file a 1040x. (i posted here about that and received good advice from you, i think, and from some others - thanks.)

so for the first time the details became important. on the 1040x, i changed my filing status from "head of household", which i am allowed to use because my husband is a non-resident alien, to "married filing jointly" which i am allowed to use if we declare my husband's worldwide income. my husband does not work outside the home, so that did not affect our taxable income.

what did affect it was the exchange rate. i had been using the end-of-year exchange rate, but while researching the regulations i discovered that i should have been using the average exchange rate. that boosted our income by $3998. in combination with the change in filing status our taxable income increased from $0 to $334.

the tax on that was $51, which was covered by the child tax credit, leaving the tax at $0, as it was before. then, the additional child tax credit gave us a credit of $1219, which should have been the amount of the refund.

thanks for your time,


p.s. in case you were wondering, 2001 is the first year that income excluded under the foreign earned income exclusion is not excluded for the additional child tax credit. that is why i had never run into this situation before. some professionals missed this as well - my cousin's accountant filed an amended return for her free of charge since he missed it on the original return.

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