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New Member
posted Feb 4, 2024 10:41:23 AM

I just had my child December 30th. When I fill out the tax break section of my return, it says I’m not eligible for the CTC. Why is that?

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2 Replies
Level 15
Feb 4, 2024 10:49:42 AM

Congratulations on your new baby!   For a newborn, you have to say in My Info that the child lived with you for the WHOLE year  (yes, even it it was only for two days in 2023).

 

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2023 make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

Expert Alumni
Feb 4, 2024 11:02:07 AM

This is just a guess, but in Personal Info did you say that the child lived with you for the whole year.  

If the child was born on December 30th, they did live with you for their whole year.

 

The IRS guideline is:

"You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States.

To be a qualifying child for the 2023 tax year, your dependent generally must:

  • Be under age 17 at the end of the year
  • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
  • Provide no more than half of their own financial support during the year
  • Have lived with you for more than half the year
  • Be properly claimed as your dependent on your tax return
  • Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
  • Have been a U.S. citizen, U.S. national or U.S. resident alien

You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).

Parents and guardians with higher incomes may be eligible to claim a partial credit."

 

Please see: Child Tax Credit Also see the TurboTax article Birth of a Child and read the Child Tax Credit section.

 

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