Not receiving a child tax credit?

[december1890]

I did not earn anything close to the limits for the tax credit and my children are both under 17 why would I not receive anything for a tax credit?

[Hal_Al · Accepted solution]

 There are usually 1 of 6 reasons, you don't get the Child Tax credit(CTC). See #4, in particular:

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)

2. Your child may be  too old (over 16). 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 $1000 CTC.

3. Your income is too high. The Child Tax Credit (CTC) is phased out at higher incomes starting at $110,000 for joint filers  ($75K single). You lose $50 for each $1000 (rounding up) your income is over that threshold.

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 $3000 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 43 of form 1040A instead of line 35 (lines 67 & 52 of form 1040).    In the on-line version of TT,  the  main Form 1040, 1040A or 1040EZ can be seen through Tools, View Tax Summary, Preview My 1040 or  (RUE) go to Print Center and then choose to Preview. The ACTC is calculated on form 8812; that form is not viewable in the online version of TT until you have paid for your return. But, the ACTC is basically 15% of your earned income over $3000.

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, early distribution penalty or another type of additional tax, for which the CTC cannot be used.

To get a 'second opinion' on-line direct from IRS, try http://www.irs.gov/uac/Am-I-Eligible-for-the-Child-Tax-Credit%3F

[xmasbaby0]

The child tax credit can only reduce your tax liability down to zero.  It is not a refund.  If you have no tax due, then you may not receive the full amount of Child Tax Credit

[Chelz1937]

I have three children under the age of fifteen. I'm a single mom on disability and did file my taxes for last year and did receive my stimulus money for everyone. It went into my bank account through direct deposit. But for some reason I did not receive my child tax advance and was wondering why.

[Critter-3]

On the 2020 return if you had no earned income (disability doesn't count) then you got no CTC on the return and the advance was being sent out based on the 2019 or 2020 returns.   If you don't get it in advance then you will get the credit on the 2021 return if you have any qualifying income. 

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

[chaseme5184]

I have 3 kids under the age of 15 in my house. I received a child tax credit for them every year since they were born. Why am I having these problems now? So what every other child in America can receive one but not mine.

[xmasbaby0]

@chaseme5184 We cannot see your tax return --- it is not clear whether you are talking about the monthly child tax credit payments that began in July.    Those payments are being issued by the IRS---TurboTax has nothing to do with those payments.

 This is a brand new system thrown together by the IRS after Congress changed tax laws in the middle of the tax season.  There are going to be bugs, glitches and mistakes made and folks will unfortunately have to be patient until they sort it out.  

If you do not receive the monthly payments you will be able to get the CTC on your 2021 tax return.

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-t...

[Ajm7]

My son was born in may 2021 and the child tax credit is not showing up in my refund,  only his stimulus check is. I am Eligible,  I make 36000 a year. He is my first child so I did not get advanced payments. I am head of household and the only one claiming the child.

[xmasbaby0]

@Ajm7 The software needs updates for the CTC.   And.....

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. If your child was born in 2021make 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.

The CTC will show up on line 28 of your Form 1040.

[Critter-3]

Agreed ... go back and review this screen ... read it carefully ...