How come I don't qualify for any Dependent care credits on Schedule 8812?

[az148]

How come I don't qualify for any Dependent care credits on Schedule 8812? I thought as long as you have dependents you could qualify for at least $500 (dependents are older than age 18) for each dependent? 

[Mike9241]

its possible your adjusted gross income is too high

because of the advance credit that some got there should be a schedule 8812 in your return.

shorten version of schedule 8812 which is used to compute the credit (assumes certain other lines don't apply)

1) your adjusted gross income from line 11 of the 1040

2) number of dependents who are not under age 18 times $500

3) $400,000 if married filing jointly, otherwise $200,000

4) subtract 3) from 1) if zero or less use $0 otherwise round up to the nearest $1000 (for example $1,025 gets rounded to $2,000) 

5) multiply 4) by 5%  

6) subtract 5) from 2) if zero or less use $0 - (so for each $10,000 on 4) the credit is reduced by $500 

[az148]

Nope my AGI is relatively low. is it a non-refundable credit?

[SweetieJean]

Your mention the Dependent Care Credit, but then said $500 and Schedule 8812.  Do you really mean the Child/Dependent Tax Credit? Please clarify.

[SweetieJean]

See requirements here:

An overview of the credit for other dependents | Internal Revenue Service (irs.gov)

[xmasbaby0 · Accepted solution]

@az148 

It sounds like you are confused by two different credits.    The child and dependent care credit is a credit available to folks who must pay someone to take care of their dependent so that they can work.   

The $500 credit for other dependents is a credit you can get if you have a qualified relative dependent who is over the age of 18 (or who does not have a Social Security number).      It is NON-refundable.   It can lower the amount of tax you owe, but it is not added to your refund.  You do not "get" $500 per dependent.

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

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

Edit---the credit for other dependent is not limited to a dependent older than 18.   The age of the dependent can be younger.   But the relevant factor is that the child is not a qualifying child dependent---only a "qualifying relative."

[az148]

Yes, I do mean the Child/Dependent Tax Credit on Schedule  8812! Didn't know there was a dependent care credit as well 

thank you!

[az148]

@xmasbaby0 So that means if you have no tax liability, we don't receive any of this Dependent Tax Credit? thank you!

[xmasbaby0]

@az148    You are still not using the correct name for the credit so we do not know what you are trying to ask about.  There is no credit called the "Dependent Tax Credit."

There is a refundable child-related credit called the Child Tax Credit.   That is a credit for $3600 for a child under the age of 6; or $3000 for a child six to 17 years old.    That credit can add money to your refund.

There is a non-refundable credit called the Credit for Other Dependents.   That one is $500, and can be used to pay toward your tax liability.  It is NOT added as part of the refund you receive.

There is also a Child and Dependent Care Credit.   You can get that credit if you pay someone to take care of your child while you work.   That credit is not on Schedule 8812.

Please read these links again carefully:

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

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

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

If you got the child tax credit it will be shown on line 28 of your Form 1040.   Is there an amount on line 28?