Sure. If you already owe zero in total Federal income taxes because of all your deductions and other tax credits, then you do not get the benefit of the CTC because it cannot be used to reduce your tax liability below zero. There are two types of tax credits: Refundable and Nonrefundable. Refundable tax credits can be used to reduce your tax liability below zero and generate a refund payment to you. The Earned Income Credit is one example of this. A nonrefundable tax credit does not generate a refund; it only reduces an existing tax liability but cannot reduce it below zero.
