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SimpID
New Member

EIC

While filing my 1099 taxes most of the chiled tax credit and EIC went towards paying my years taxes. I'm a single father with sole custody of my one child who lives with me all year. It did not give me the option to select how many months out of the year she lives with me. (like other tax sites) It said that not all of the child tax credits could be used toward paying taxes but I never received the difference and only told me I owed more money. Did turbo tax give mine and my daughter's child tax credit to her dead beat mom?

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2 Replies

EIC

@SimpID 

 

 

"my 1099 taxes..."   Do you mean you are self-employed and have a 1099NEC?

 

You might have made some mistakes when you went through MY INFO.   That is where all of the information about your dependent was entered.  If you have not e-filed yet, you need to go back to MY INFO, click your name, and check to see what filing status you used.  Then click your child's name and go through ALL of the screens for your child and see how you answered the questions about your child.  If you have already filed and your return has been processed, then you may need to amend and look at these same things when you amend.

 

You were asked in MY INFO how many months of the year your child lived with you.  You were given the choice of the "whole year" or the choices of numbers of months---perhaps you sped past that screen or answered incorrectly.   If you are the custodial parent then you should have selected the whole year--or at least should have chosen a number of months that would have been more than half the year.  

 

You were also asked if there is a signed agreement with the other parent--how did you answer that question?   The way you answered that question is very important.   If you have a signed Form 8332 with the other parent, that means that other parent could get some of the child-related credits.   What filing status did you use?  Did you file as "Single" or as "Head of Household?"

 

Any time you are getting tax credits, those credits are used first toward the tax you owe, and then IF your tax owed is down to zero, you can receive the remaining amounts of refundable credit like earned income credit or the additional tax credit as part of your refund.

 

You say you are self-employed---so you owe self-employment tax for Social Security and Medicare, as well as ordinary income tax.    You do not mention whether you paid any estimated quarterly tax during the year, or how much you made.   The child-related credits are used first toward any tax you owe.

 

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1600.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1600 per child. If the amount you earned was too low, you will not get the full $1600.

 

 If your child is older than 16 at the end of 2023, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

 

 

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

 

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...

 

 

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021.   And you cannot use your income from any earlier tax year to get the EIC for a 2022 return.  There is no “lookback” for 2023.  EIC for 2023 will be based on the income you earned by working in 2023.

 

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

 

 

 

Look at your 2023 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

EIC

If you made mistakes and need to amend, wait for the original return to be fully processed and then amend.  

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

 

Do not expect quick results from amending. It can take five months or more for the IRS to process an amended return.  

 

You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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