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kimberleebernste
New Member

What is a disqualifying event that would stop me from getting a child tax credit

 
6 Replies
ee-ea
Level 13

What is a disqualifying event that would stop me from getting a child tax credit

Hal_Al
Level 15

What is a disqualifying event that would stop me from getting a child tax credit

Why are you asking?

 

Two common ones are:

You child turned 17 during the year.

Even though your dependent, your child did not meet the qualifying child rules, most likely did not live with you for more than half the year

 

You do not select the Child Tax credit (CTC). If you are entitled to it,  TurboTax (TT) will automatically give it to you.

 There are 6 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 born in 2019, you have to answer that he lived with you all year. 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.

  1. 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 18b of form 1040 (2019 version) instead of line 13a (lines 17 and 12 in 2018).   The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1400 per child (not $2000).
  2. 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.

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

xmasbaby0
Level 15

What is a disqualifying event that would stop me from getting a child tax credit

Not sure what you mean by "event" -- the child must be under the age of 17 for the tax year, and must have a Social Security number.   The CTC is affected by the income you earn from working.  The child had to live with you for at least half of the tax year.

 

Give us some details about the child you tried to get the CTC for.....

 

 

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 2020, even on the last day of 2020, 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 2020 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 additional 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 2020 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

Child and Dependent Care Credit line 31 (from line 13 of Schedule 3)

 

 

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

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

**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.**
busywoman5343
New Member

What is a disqualifying event that would stop me from getting a child tax credit

I am receiving child tax credit for some children I had in 2020 as I was their legal guardian.  I need to stop this and have been trying to find a way to stop the child tax credit payment I am receiving on Christian Foster, Lillian Satterly & Hayley Satterly.  Please advise 

 

Thanks

 

DoninGA
Level 15

What is a disqualifying event that would stop me from getting a child tax credit


@busywoman5343 wrote:

I am receiving child tax credit for some children I had in 2020 as I was their legal guardian.  I need to stop this and have been trying to find a way to stop the child tax credit payment I am receiving on Christian Foster, Lillian Satterly & Hayley Satterly.  Please advise 

 

Thanks

 


Go to this IRS website to unenroll from the advance child tax credit payments.  Click on Manage Paymentshttps://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

xmasbaby0
Level 15

What is a disqualifying event that would stop me from getting a child tax credit

The last day to un-enroll for the December 15 monthly child tax credit payment was November 29.   If you have received child tax credit payments for which you are not eligible then you may end up having to pay it back when you file your 2021 tax return, or at least lose the credit for 2021 and not receive more.

**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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