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elight30
New Member

Earned income credit and child tax credit

If claiming 2 dependent children why would I not receive child tax credit or earned income credit for either one of them?

4 Replies
macuser_22
Level 15

Earned income credit and child tax credit

That depends om several things, you income, the amount of months the child(ren) lived with you, the child age and other factors.

 

The interview should tell you why you do not qualify.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
elight30
New Member

Earned income credit and child tax credit

Had income of $11,237 and they lived with me 12 months and are 7 and 1

RayW7
Expert Alumni

Earned income credit and child tax credit

To qualify for the EITC, you must:

  1. Show proof of earned income.
  2. Have investment income below $3,650 in the tax year you claim the credit.
  3. Have a valid Social Security number.
  4. Claim a certain filing status.
  5. Be a U.S. citizen or a resident alien all year.

-follow these links for more information on the EITC-

Earned Income Credit - TurboTax Tax Tips & Videos

5 Facts About the Earned Income Tax Credit - TurboTax Tax Tips

 

The CTC is worth up to $2,000 per qualifying child, but you must fall within certain income limits. For 2020 and 2021, you can claim the full CTC if your income is $200,000 or less ($400,000 for married couples filing jointly). You may still qualify for a partial credit if your income is above that limit.

 

-follow these links for more information on Child Tax Credit-

2020 Child Tax Credit Calculator and Top 7 Requirements ...

Child Tax Credit - TurboTax Tax Tips & Videos

macuser_22
Level 15

Earned income credit and child tax credit


@elight30 wrote:

Had income of $11,237 and they lived with me 12 months and are 7 and 1


You would have no tax liability for $11,237 of income and the child tax credit can only reduce your tax liability to zero, so if already zero then no child tax credit, but you might qualify for additional child tax credit.  Approximately $1,310  ((11237-2500) X .15 = 1311)

 

For the child tax credit of $2,000 per child.

The child must have been no older than 16 at the end of 2020.

The amount of child tax credit you can receive is limited by your taxable income (1040 line 15)
If your taxable income is zero, then you are not eligible for any child tax credit.

However, if you do not qualify for the Child Tax Credit, and if your earned income is greater than $2,500, you might be eligible for the Additional Child Tax credit. That amount is 15% of earned income greater then $2,500 up to a maximum of $1,400.

Too high of an income will reduce or eliminate the CTC also.
Married Filing Joint - $400,000
Single, Head of Household, or Married Filing Separate-- $200,000

The child tax credit will be reported on lone 19 on the 1040 form. Additional Child tax credit on line 28 on the 1040 form.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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