Child Tax Credit with no earned income

[syrscuba]

I am retired and received no earned income in 2024, only pension, dividends and social security. I entered all information in the return and TurboTax online states that my daughter, who is under 17, qualifies for the CTC ($2000). In 2023, my daughter qualified under the “Credit for Other Dependents” with the same incomes. Is this a potential bug? The IRS clearly states that the CTC does not start to kick in until $2,500 of earned income. 

[xmasbaby0]

If you have no income from working, you will not get the refundable portion of the CTC.   For a child under the age of 17 you may get the CTC of $2000 on line 19 of your Form 1040, which can be used to reduce your tax owed to zero.   But unless you have at least $2500 of income from working you will not get any of the refundable additional child tax credit that appears on line 28.

[Bsch4477]

You have to have earned income to get the child tax credit. 

[xmasbaby0]

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-tax-credit/L2lNhfGDl_US_e...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6x...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

[lambs63]

I understand that you have to earn income to have CTC of $2000 per child under 17. But what could be the reason for Turbo Tax to $ 1900 for 2 kids under 17? Of course, we earned income and paid taxe during the year. Can anyone help understand?

[DawnC]

The credit phases out once your income reaches a certain level.   You can get up to $2,000 for each child under age 17 if your modified adjusted gross income (AGI) is less than:

• $400,000 if you're Married Filing Jointly
• $200,000 for all other filing statuses

If your AGI is higher than that, the amount of Child Tax Credit you're eligible for is reduced by $50 for each $1,000 your modified AGI is above the income threshold.   For example, if you're Married Filing Jointly making $401,000, you’re eligible for a total credit of $1,950.   @lambs63 

[NCperson]

@lambs63 if you see $1900 on Line 28, that would imply earned income of $15,200.  

The additional child tax credit is 15% of your AGI that exceeds $2500 or $1800 per child whichever is lower.

At $15,200 of income, the aCTC would be $1900.