Q. I was paid to babysat my nephew. Can I still get a tax refund, from the refundable tax credits?
A. Yes. Self employment income is "earned income" and qualifies for the "Additional Child Tax Credit" and the "Earned Income Credit".
The money you hear about people getting for just filing a tax return claiming kids requires them to have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit. Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. The child tax credit does not "kick in" unless you have at least $2500 of earned income.
