Child tax credit

[Luis_09_]

So my father who has an itin number has been filing taxes recently(5-7 years). At that given moment I was still underage, my brother was/is still underage. He always put us down as his dependents and puts the child tax credit. But have never received any tax refund from the child tax credit. He earns around 2500 per month. I'm new at this, I might be missing something. Thank you

[DanaB27 · Accepted solution]

First,  to be able to get the refundable portion of the Child Tax Credit you must have $2,500 or more of earned income. 

Second, to qualify for the Child Tax Credit, the child must fit all of these requirements:

• Be under age 17 at the end of the tax year
• Is your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew)
• Has his or her own Social Security Number
  • Children with ITINs don't qualify, but may instead be eligible for the $500 Credit for Other Dependents
• Lived with you for more than half the year
• Didn't support him/herself (didn't pay more than half their own expenses)
• Is a U.S. citizen, U.S. national, or U.S. resident alien
  • Residents of Canada or Mexico wouldn't qualify

[Luis_09_]

My younger checks out all those requirements, could be the place my father did his taxes make a fraud?

How much could be the average my father receive in the refund. Thank you for answer!

[DanaB27]

If your father used a tax software to file his tax return then the Child Tax Credit won't be on the tax form unless all requirements are met and enough income was earned. Therefore, there shouldn't be any fraud issue.

 You can check lines 19 (Child tax credit or credit for other dependents) and line 28 (Additional child tax credit) on your Form 1040 to see if you are receiving any Child Tax Credit. 

To preview Form 1040 in TurboTax:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[Luis_09_]

He makes around 25k a year but he's self employed does that affect anything?

[DanaB27]

Yes, it will depend on his net earnings (income minus expenses) if this is below $2,500 then he will not get any Child Tax Credit. Please check Schedule 1 line 3. If that line is less than $2,500 and he doesn't have any other earned income then he will not qualify for the Child Tax Credit.

[chethm]

Hi Team

I have completed my details and have printed the Federal tax documents to send it by mail ( submitting in-person through appointment).

In the form 1040 provided by Turbotax, the Child Tax Credit is shown as $2000 for 1 child with ITN & $500 for other child and i'm applying the ITIN for my second child this year.

My question:

I'm Non-resident Alien, My elder daughter is 6yr old and has ITIN but still Turbotax is showing Child Tax Credit (CTC) as $2000. and for 2 children with both ITINs showing as $2500.

I spoke to the turbotax assistants 2-3 times and they said this is correct. Please let me know if its correct.

For Elder daughter i had received my ITIN in 2018. Not sure if its due to this ?

[ReneeM7122]

The child with the ITIN is eligible for $500 of the Child Tax Credit.

First,  to be able to get the refundable portion of the Child Tax Credit you must have $2,500 or more of earned income. 

Second, to qualify for the Child Tax Credit, the child must fit all of these requirements:

• Be under age 17 at the end of the tax year
• Is your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew)
• Has his or her own Social Security Number
  • Children with ITINs don't qualify, but may instead be eligible for the $500 Credit for Other Dependents
• Lived with you for more than half the year
• Didn't support him/herself (didn't pay more than half their own expenses)
• Is a U.S. citizen, U.S. national, or U.S. resident alien
  • Residents of Canada or Mexico wouldn't qualify

@chethm

[chethm]

Thank you, I understand that.

So, How can i get this updated in the Turbotax issued 1040 form. 

In 1040, for line 19 the Child Tax Credit is shown as $2500 for 2 children. which should be $1000 for 2 children.

How can i get this updated in Turbotax?

[DaveF1006]

Actually according to the IRS, you are receiving the full refundable credit for one of your children and $500 for child with the ITIN. This is correct.

[chethm]

But, Both of my children are not US Citizens and are my dependents on H4.

Is this still correct

[DaveF1006]

Do they both have ITIN's?

[chethm]

For 1 child already have an ITIN, for the 2n child i will be applying this year.

[chethm]

This is solved now!!

I had a call with TurboTax specialist and together we were able to find a solution here.

Actually the issue is, In Turbotax under the Child SSN field there is option which need to be selected if it is a ITIN. Though i had selected it for my daughter with ITIN number and did not selected for my son as he do not have the ITIN yet and i will be applying this year.

When i selected the radio button below the SSN field for my son without entering the SSN showed the correct $500 amount.

[AmeliesUncle]

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@chethm wrote:

I'm Non-resident Alien

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If you are a Nonresident Alien, you can NOT use TurboTax.  TurboTax is not capable of preparing the required forms for a Nonresident Alien.  You should go to a tax professional that is EXPERIENCED with Nonresident Aliens.  Do NOT use TurboTax, or your tax return will be wrong.