topic Child tax credit and Child depend care credit in Deductions & credits

Child tax credit and Child depend care credit

nrowe-nrowe — Sat, 01 Jun 2019 06:56:42 GMT

Hi, My wife and I file married jointly. I have my own business and had a loss of income last year, but as filing jointly we have positive income as a family. It looks like we are not receiving the child tax credit and the depend care credit due turbotax saying I didn't make any income last year. If I was filing separately I could understand, but we are filing jointly and have positive income. Please advise. Thanks/

Hi, Thank you for response. Regarding line 47 and 37 the...

nrowe-nrowe — Sat, 01 Jun 2019 06:56:43 GMT

Hi,

Thank you for response. Regarding line 47 and 37 the amounts are above the requirements you stated. Why are we not receiving credit? To summarize again my wife and I are filing married jointly. She has W-2 and is well in the positive. My business has a loss for year and I show that on a Scedule C. So our joint house income is positive.

A business loss will reduce your other taxable income and...

DawnC0 — Sat, 01 Jun 2019 06:56:45 GMT

A business loss will reduce your other taxable income and your tax liability. You must have enough income to have a tax liability in order to take either one of those credits. Unless there is a tax liability there is nothing that the credits can reduce.

Preview your 1040. Go to My Account >>> Tools >>> Tax Summary >>> Preview 1040. Look at line 47. This is your tax liability; if it is 0, you are ineligible for the credits.

Furthermore, in order to receive the Additional Child Tax Credit, you would need to have at least $3,000 of earned income. This includes wages from the two of you and your business loss. Check line 37; if under $3,000, the Additional Child Tax Credit is unavailable to you also.