Child Tax Credit

[Angellpnb2007]

I filed my taxes every year and never had this problem. I have a 12yr son whom I stated lives with me the whole year. Once I got to my deductions/credit it say I am NOT eligible for the EITC but I am eligible for the CTC; the full $2000. By the time I was done putting in all my W2s I had $0 credits! I have never needed this refund more this year than any other year. Why did I not receive the $2000 even if it said Im fully eligible? My refund was under $900 this year. I am so heart broken and sad. I usually get both credits now I got nothing.  Please help. 

[CatinaT1]

We can't see your return, but I would suggest reviewing all the answers input to ensure they are correctly answered.  

To qualify for the Child Tax Credit, your 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 

• Lived with you for more than half the year 

• Didn't support him/herself (i.e., didn't pay more than half their own expenses) 

• Is a U.S. citizen, U.S. national, or U.S. resident alien 

Additionally, you must have tax liability for the credit to be applied to.  If you do not, you may qualify for the Additional Child Tax Credit. 

These links will provide more information: 

Child Tax Credit 

Additional Child Tax Credit 

[Angellpnb2007]

I understand and I made sure to review my return several times. Every answer is correct and I still was not giving the credit. I'll try calling the IRS. Thank you for the timely response. 

[SweetieJean]

First, the Child Tax Credit is nonrefundable.  It can lower your taxes due to zero, but cannot refund you any excess.   However, you might still qualify for the Additional Child Tax Credit.  If so, it will appear on Line 28 of your tax return.  However, you must have at least $2,500 of earned income to qualify.

You said you didn't qualify for EIC.  Did you receive unemployment comp in 2020?   While taxable, it is not considered as earned income and this does not qualify for the EIC.  FYI:  The EIC was originally developed to help low and middle income working families help offset Soc Sec and Medicare payroll taxes.  Since those do not apply to unearned income (retirement income, unemployment comp, investment income, etc.), these types of income do not qualify for EIC.

[Angellpnb2007]

My AGI was barely $60k. I worked fulltime in 2020. No unemployment or anything. Just working. 

[Erinpoirier]

Same thing happened to me. I think there is a glitch in the system. I'm going to try to ammendment my return to get the credit. 

[Opus 17]

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@Erinpoirier wrote:

Same thing happened to me. I think there is a glitch in the system. I'm going to try to ammendment my return to get the credit. 

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Did you already file your return?  If not, you do not need to file an amended return.  Just fix the return you have.

Your situation sounds like you indicated that the child lived with you more than half the year, but that you were allowing the other parent to claim the child as a dependent due to a custody agreement.  This situation only applies to children of divorced or separated parents who live apart.  If you live with the other parent unmarried, this tax treatment is not allowed.

If no one else can claim the child, you answered a question wrong in the dependent interview.  Delete the child from the interview and add them again, and make sure to answer "no" to the custody question.

If you are living together unmarried with the other parent, only one parent can list the child on their return, and that parent should also answer "no" to the custody question.  The parent not claiming the child should delete them completely from their return to prevent accidentally claiming duplicate benefits.  Again, you may need to delete the child and add them back again.

If you are divorced or separated and share custody, and if you need to allow the other parent to claim the child as a dependent, then your return is correct, you are entitled to EIC but not the child tax credit.  Answer "yes" to the custody question, then you need to print and sign form 8332 dependent release, and give it to the other parent so they can claim the child tax credit.. 

[Opus 17 · Accepted solution]

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@Angellpnb2007 wrote:

My AGI was barely $60k. I worked fulltime in 2020. No unemployment or anything. Just working. 

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@Angellpnb2007 see my other answer, it sounds like you answered the custody question incorrectly in the dependent interview.  Try deleting your child and then re-entering them. 

[Angellpnb2007]

Yes, i was wondering if there was some glitch as well. I reviews my answers 7x before accepting. I thought I was going crazy.  did you go about doing so?

[Angellpnb2007]

? I did?. Okay ill try amending my return and fixing the questions. Though I review multiples time, I remeneber clickimg "yes" the the whole year. 

Thank you.