It shows that we should have received a CTC but are only getting the taxes we paid in and even though it says we would get the $2500. We aren't receiving that money??

Forum|Forum|3 years ago
June 25, 2023
3 replies
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rjs

Level 15

What is "it" that says you should get a Child Tax Credit of $2,500? What exactly does "it" say, word for word? Can you post a screen shot? For 2022 the maximum Child Tax Credit is $2,000 per child and the maximum Additional Child Tax Credit is $1,500 per child. Even if you get the credit, you don't necessarily get the maximum amount.

The Child Tax Credit cannot make your refund more than the amount you paid in, but the Additional Child Tax Credit could make your refund more than you paid in.

How many children do you have who were under 17 years old at the end of 2022?

Look at your tax forms.

On the first page of Form 1040, in the Dependents section, how many children under 17 are listed? Is the box checked for Child Tax Credit for each child who was under 17 at the end of 2022? Are there any other dependents listed? If so, how many? How many of them have the box checked for "Credit for other dependents"?

On the second page of Form 1040, line 19 is the Child Tax Credit. Line 28 is the Additional Child Tax Credit. What are the exact amounts on lines 18, 19, 20, 21, and 22? What is the exact amount on line 28?

NCperson

Level 15

@nerdyo56 when you state "you are only getting back the taxes you paid in' suggests to me what you really mean is whatever was WITHHELD you are getting back as a tax refund.

The way CTC works is two parts

1) the first part is non-refundable. If you have no tax liability (and I suspect you don't), that means Line 18 is zero. That means there is no tax credit for the over 16 year old (no $500) and nothing for the child under 17.

2) the 2nd part is refundable. You receive the LOWER of these 3 numbers for the child under 17 years old.

a) 15% of your earned income that exceeds $2500. if you did not even earn $2500, there is no credit.

b) $1500 (for 2023, this becomes $1600)

c) $2000 less the result of the first part.

does that help?

Opus 17

Level 15

For 2022, the Child Tax Credit is $2000 for a child dependent who was age 16 or less as of 12/31/22. An older child dependent only qualifies for the $500 credit for "other dependent."

In addition, the Child Tax Credit can only be applied against taxes you owe. If you owe less than $2000, you won't get the full credit. You may qualify for the "additional child tax credit" if you have income earned from working, but other types of income (investments, unemployment compensation, gambling, etc.) doesn't count. @NCperson gives the details.

If you worked a side gig, make sure you report your income as self-employment on schedule C and not as "other income."

It's not clear if you are looking at your Turbotax result, or if you filed a return and then got a notice from the IRS that they are paying a smaller refund than you claimed. If you are claiming less than you think you should, it may be the earned income issue. If you filed a return and the IRS is paying less than you claimed, we need more information about what the IRS changed.