<p>Consider what is often said to those who complain that the middle class makes “too much” to qualify for significant amounts of financial aid - would he rather have the income that makes him qualified?</p>
<p>He got his education, and has a reasonably high paying job. Many students who recently graduated don’t have jobs, or settled for much lower salaries. Many of the lowest income students had enough loans to qualify for the earned income credit, but never benefitted from the full amount because their parents’ houshold incomes were low enough they didn’t have tax liability, and were limited to the 40% refundable portion of the credit.</p>
<p>Most tax credits phase out as income increases - that’s the way the system is designed. Dollar for dollar, he’s still better off with the better paying job.</p>
<p>401K or IRA constributions (or HSA if his company has one) can be made until April 15th to count toward this year - reduce that AGI, and he is still in the range to possibly claim the credit.</p>
<p>If you are helping pay them, and you cosigned, you might be able to claim them instead.</p>