What does the word “attribute” mean? Colorado Revised Statute 13-54-102 exempts the “full amount” of a debtor’s federal income tax refund that can be “attributed to” to the child tax credit. In these cases, the debtors exempted the portion of their federal income tax refunds attributed to the child tax credit, but the Trustee objected. The bankruptcy courts sustained both objections, concluding that the child tax credit does not constitute property of the estate and that because the credit itself is non-refundable, none of the refunds can be “attributed” to it.
Based on the Court’s interpretation of the plainly worded Colorado exemption statute, the amount of the refund that is caused by or “attributed to” the application of the child tax credit in either of its forms is exempt from attachment or levy under Colorado law and is therefore exempt. Determining the “full amount” of what is attributable to the credit is as straightforward as comparing the debtor’s actual tax return with the credit applied to a hypothetical return without the credit applied.
Reversed.