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shanekleiber
New Member

I have 2 dependents. When I'm doing my taxes its saying my deduction is 2500. Is that right. I thought you got 2000 for each child?

 
3 Replies
DoninGA
Level 15

I have 2 dependents. When I'm doing my taxes its saying my deduction is 2500. Is that right. I thought you got 2000 for each child?

Is one of your dependents age 17 or older as of 12/31/2019?  If so then they are no longer eligible for the Child Tax Credit but only eligible for the Other Dependent Credit.

NCperson
Level 15

I have 2 dependents. When I'm doing my taxes its saying my deduction is 2500. Is that right. I thought you got 2000 for each child?

and that means  $2000 for the child tax credit and $500 for the Other Depedent Credit .... or $2500

xmasbaby0
Level 15

I have 2 dependents. When I'm doing my taxes its saying my deduction is 2500. Is that right. I thought you got 2000 for each child?

 

CHILD TAX CREDIT

 

There was lots of hype in the news about the new $2000 Child Tax Credit when the tax law changed for 2018 and beyond.    Unfortunately, some people do not yet understand that it does not mean they will automatically receive $2000 per child just for filing a tax return.

Do not assume your refund will include $2000 per child for child tax credits.  It does not work that way.  The CTC is used first to reduce your tax liability to zero. After that, there is a refundable portion —up to $1400 — called the Additional Child Tax Credit that is calculated based on the amount of income you earned.  You do not necessarily get the maximum amount.  You get 15% of the amount of income earned above $2500--UP to the maximum amount possible.

 

If your child turned 17 in 2019, even on the last day of 2019, you do not get the child tax credit.  There are no exceptions to the rule.  You can still claim your child as a dependent.

Your child must have a Social Security number to get the CTC. 

If your child was born in 2019 you need to say the child lived with you for the WHOLE year.

If your child lived with you for less than half the year you cannot get CTC.

If you did not earn at least $2500 you cannot receive the child tax credit.  Beyond that amount the CTC you receive is affected by your tax liability and the amount you earned.  You might not get the full $2000 of CTC.

 

The child tax credit is reduced by $50 for every $1000 of AGI over these limits:

Married filing jointly                $400,000    (CTC disappears at $440,000)

 

Single, Head of Household, Married Filing Separately or qualifying widower               $200,000  (CTC disappears at $240,000)

 

Look at your 2019 tax return to see the credits you received:

Child tax credit line 12a

Additional Child Tax Credit line 17b   (schedule 8812)

Credit for Other Dependents line 12a

 

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

https://ttlc.intuit.com/questions/3029430-why-is-my-child-tax-credit-smaller-this-year

https://ttlc.intuit.com/questions/4505689-why-am-i-getting-the-credit-for-other-dependents-instead-o...

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

**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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