Yes, you must qualify to claim child tax credit. Below are requirements to claim child tax credit:
- Must have earned income less than your filing threshold ($400,000 for married filing joint).
- Must live with you more than half of the year.
- Must have a qualified dependent under 17 years old
- Must be a US citizen or resident.
- You provided more than one-half of the household support.
Child tax credit is non-refundable. If any part of the credit is disallowed because tax is reduced to zero, you may be able to claim additional tax credit which is refundable.
For example:
AGI - $12,000
Less: Standard Deduction $12,000
Taxable Income 0
Based on the above example, your taxable income was zero, But because your tax liability was reduced to zero before the entire child tax credit was used, you may claim Additional Child Tax Credit for a full $2,000/each qualified dependent child.
