Why no Child Tax Credit? I meet all 7 requirements

Hello. I can't figure out why TurboTax is not applying a child tax credit.

 

I have two children and they meet all 7 requirements. It's true I live overseas and I'm married to an Italian, but that should not have any effect since we meet the 7 requirements.

 

I've ready various other answers on this forum and still don't understand.

BillM223
Expert Alumni

Deductions & credits

So you have read this TurboTax FAQ and satisfy all the conditions.

 

Is it possible that you don't have any earned income? You have to have at least $2,500 of earned income (like W-2 or Schedule C) in order to get the credit?

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Deductions & credits

I indeed have read that FAQ and have earned income well over the minimum 2500 and we'll under the max 200000. But it's not from a W2 as I live in Spain and have a foreign employer. That should not matter unless TurboTax has a bug.

 

I don't actually pay any tax due to the Foreign Earned Income Deduction, but I believe I should still see the CTC listed as a valid deduction in TurboTax.

 

There's another clause which allows people who don't owe any tax to still get a portion of the CTC as a refund, which is my goal. Other Americans I know are able to get this benefit.

 

Thanks for chiming in and I look forward to any ideas. 

Deductions & credits

The refundable portion is not eligible if you used the Foreign Earned Income Exclusion.  So if you don't have any tax to use the non-refundable portion, you don't qualify for any of it.

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Deductions & credits

Oh, that's not what I wanted to hear. Thanks for the information.

Deductions & credits

Are you paying income tax to Spain?

 

If so, you might want to 'test out' the results if you DON'T use the Foreign Earned Income Exclusion but use the Foreign Tax Credit instead.  

Deductions & credits

That's a good idea. Yes, as an employee of a Spanish company I pay standard local income tax.