Additional Child Tax Credit

[rachey 6]

I received the ACTC  last year for 2 children in Turbo tax.  This year, with everything nearly the same TT is denying the credit.  I have farming losses that exceed my wife's w-2 earnings(which are $62,000.  The total earnings are negative but turb tax allowed it in 2024.  Has something changed in 2025?

[VolvoGirl]

How old are the children?   Did they turn 17 in 2025?

[AmyC]

The IRS Farmer's Tax Guide -pub 225 - allows you to claim the Farm Optional method (explained on page 81). Pub 225 states: . You can use this method if you meet either of the following tests. 

1. Your gross farm income is $10,860 or less. 

2. Your net farm profits are less than $7,840.

Since you need at least $2500 of positive income to claim credit for the kids, this will allow you to claim the credit and keep your Social Security credits active.

The child tax credit is for children under 17 and the value did increase for 2025, up to $2200 per child.

It wouldn't hurt to try the optional method, pay a little SE tax and get a big child credit- if you qualify.