<p>Well sure, but most tax credits aren’t an intentional one-time distribution of unearned income. This was just an expedient distribution mechanism. Most tax credits are established offsets in the tax code (as you note).</p>
<p>It’s similar to folks who had their mortgages reduced by the government action. (Not a change in monthly payments, but a recalculation of the principal). I read that some folks were surprised that the resultant income was taxable. But both of these examples are unearned income in the very purest form.</p>
<p>It would be great to see an FA officer’s response. It would be very surprising to me it wasn’t considered income.</p>