Last year I was told we don’t qualify for a child tax credit why didn’t we

[mrspittman621]

I was also told we don’t qualify for the housing credit in North Carolina

[xmasbaby0]

No one can see your information or your tax return so we cannot say why you were not eligible for the child tax credit or a state credit.   In order to get the child tax credit, you must have a dependent child under the age of 17 who has a Social Security number, and you must have income earned from working.   How old was your child?  Did you enter their SSN?   Did you say they lived with you for at least half the year--or if the child was a newborn did you say they lived with you for the whole year?   Did you enter income earned by working?

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...

Perhaps someone familiar with NC knows what the criteria for the housing credit is.

 @SteamTrain  ?   @NCperson    ?

[xmasbaby0]

I googled and found this:

Am I eligible?

You may be eligible for a the NC Home Advantage Tax Credit if:

• You are a first-time home buyer or military veteran or buying in a targeted census tract
• You meet the income and sales price limits
• You are purchasing a home in North Carolina
• You apply and are approved for the MCC prior to your home purchase
• You occupy the home as your principal residence within 60 days of closing
• Your loan is reviewed and approved by the NC Housing Finance Agency prior to closing
• You are a permanent legal resident of the United States

What properties are eligible?

• Single-family homes
• Townhouses
• Condominiums
• New or used manufactured homes

[Hal_Al]

 There are 7 possible reasons; you aren’t getting the Child Tax credit (CTC). It’s usually #4:

1. You’ve entered something wrong. In the personal Info section, for the dependent, you must select answers that indicate that he/she is your dependent child. If the child was born during the year, say he/she lived with you all year (note: TurboTax changed how this section is done two years ago, you may need to go thru the interview again or even delete your dependent and start over). If the child was with you for 6 months and 1 day, you need to mark that the child was with you 7 months. The CTC is not an automatic $2000, per child. It is income dependent. If you haven't entered your income yet, the CTC will not show.
2. Your child may be  too old (over 16). You can still claim your child, as a dependent. What you can't claim is the Child tax credit. This comes as a big surprise to many parents the year their child turns 17. A child over age 16 no longer qualifies for the Child Tax credit (CTC). Although a child can still be a student dependent through age 23, and a qualifying child for EIC,  the Child Tax Credit expires the year they turn 17 and you no longer get the $2000 CTC. Instead you will get the non-refundable (up to) $500 Other Dependent Credit.
3. Your income is too high. The Child Tax Credit (CTC) is phased out at higher incomes starting at $400,000 for joint filers  ($200K single). You lose $50 for each $1000 (rounding up) your income is over that threshold.   Previously it was $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for joint filers.
4. Your income is too low.  The child tax credit  (CTC) is also limited to your tax liability. The CTC is a non-refundable credit and can only reduce your income tax to 0, It can not help you beyond eliminating your tax liability. But, if you have more than $2500 of earned income, some or all of it is usually given back to you thru the "Additional Child tax credit". That is, part of the CTC may be on line 28 of form 1040 (2021 & 2022) instead of line 19. The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1500 per child (not $2000).
5. You are the custodial parent and the non-custodial parent is claiming the dependent this year. The CTC goes with the dependency, even though the custodial parent still gets the Earned Income Credit, Dependent care credit and Head of Household.
   
   
6. Another possibility is that part of your tax due is not regular income tax, but is self-employment tax (FICA), early distribution penalty or another type of additional tax, for which the CTC cannot be used
7. During covid (2021), the child tax credit was expanded and easier to get. That was temporary and those relaxed benefit rules are no longer available. 

To get a 'second opinion' on-line direct from IRS, try https://www.irs.gov/uac/is-my-child-a-qualifying-child-for-the-child-tax-credit

TT FAQ https://ttlc.intuit.com/questions/2625810-why-didn-t-i-get-the-child-tax-credit-or-why-is-it-less-th...

https://www.irs.gov/uac/Ten-Facts-about-the-Child-Tax-Credit

[SteamTrain]

As far as the housing credit goes...from what I can see, it is not a part of your NC tax return....but it is a part of the Federal Deductions&Credits area in the "Mortgage Interest Credit Certificate" area.  AND, you have to ger the MCC (Mortgage Credit Certificate) from applying to the NC Housing Finance Agency before you buy your residence.

NC Home Advantage Tax Credit | NCHFA

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....but I am not otherwise knowledgeable about this credit.