Nonrefundable tax credit

[danielmunhall]

How does a non refundable tax credit work when you don't have a liability but a refund?  Example:  3300 refund showing after w2 info is entered.  After you enter your nonrefundable advanced child tax credit refund goes to 0.  I understand if you had a liability it would remove your liability and you would not get the difference if there was one. Why does it do the same when you have a refund?

[DaveF1006]

Your child tax credit may be entirely a refundable credit this year since there was no tax liability to apply the non-refundable credit to. Go to;

1. Tax tools>tools>view tax summary
2. Go to preview my 1040
3. Look on line 28 to see if there is a refundable child tax credit for the amount amount you are entitled to.

[danielmunhall]

The advanced child tax credit is refundable?  I was told by another one of your agents it is nonrefundable and that is why when I enter I my 6419 it deducts from my refund.  I know I qualify for the credit and only received half last year.  

[Vanessa A]

Yes, the additional child tax credit is refundable for most people.  In some situations, where people do not qualify for the additional child tax credit and only qualify for the child tax credit, it may not be refundable. 

If you received the payments but are not seeing a difference on your refund screen, you can look at line 28 of your 1040 to verify that you did receive the rest of the child tax credit you are eligible for. You can see your 1040 by clicking the following:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040