Receiving my child tax credit

[Onebud2000]

I did my taxes a few weeks ago and it said I get the child tax credit for my daughter but is not added into my refund like it has in the last few years. I filled everything out just as i have in the past. I know its not going to be like it was in 2021 or last years. Would just like to know why it's not in my refund. Thank you!

[xmasbaby0]

The tax laws changed for child-related credits and are much less generous for 2022.

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 2022 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.

Have you entered income from working in 2022?  If not,  you will not receive an income tax refund based on having dependent children.

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back. 

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500 per child. 

 If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

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...

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021.   And you cannot use your income from any earlier tax year to get the EIC for a 2022 return.  There is no “lookback” for 2022.  EIC for 2022 will be based on the income you earned by working in 2022.

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

Look at your 2022 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

[Onebud2000]

I have done everything correctly as was stated in the irdt reply message. But the amount of the child tax credit was not added to my refund.

[xmasbaby0]

@Onebud2000 What is on line 19?  Line 28?    How old is your child?   Was the child born in 2022?  

[Onebud2000]

2000 is on line 19, there is nothing on line 28. She is three.

[xmasbaby0]

@Onebud2000 Okay----you did get the child tax credit.  But a credit is used first to reduce your tax owed to zero.   You only get the refundable portion if you owed less than the $2000.   Follow the math from line 19 down the page.    Your tax return form is really just one very long math problem.

[Onebud2000]

That's the thing, I didn't owe anything into my taxes. So shouldn't I receive all that back in my refund? 

[xmasbaby0]

The most you can possibly get back as a refund from CTC is $1500 ---and it would be on line 28.  Line 28 could be blank or have anything between $1 up to $1500.

 Again---go back to line 19 and follow the math down the page.   Pay lots of attention to the lines that go from line 19 down to line 28.... and then keep going to line 35a.   If you are getting a refund it is on line 35a.   If you still owe any tax it is on line 37.

[christiansh]

My child care credit and child tax credit shows up under payments and credits but its not included in how my refund is calculated.  It shows up correctly on previous years.  So I have the same issue.  It only shows the amount of taxes I paid and does not add any credits when calculating amount due.  

[xmasbaby0]

@christiansh First of all the childcare credit is not refundable.  It can only reduce your tax owed.  And the child tax credit is also used first to reduce tax owed.  If all of the $2000 child tax credit was not needed to reduce your tax liability to zero, then some of it---up to $1500 -- is added as the "additional child tax credit"----which can calculate down to the refund you see on line 35a.

People are confused this year because the tax laws changed.  The child-related credits are not nearly as generous as they were for 2021.

Look at your 2022 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

[Morpheus2176]

I have the same issue. Child and Other Dependent Tax Credit Amount (4000)  is not being added to my Federal refund. I do not owe taxes. It seems like the system is not updating the refund amount

[xmasbaby0]

@Morpheus2176 You are confusing credits.   There is a credit called the child and dependent care credit which can be used if you paid someone to take care of your child while you worked.  You can get a credit of up to $3000 for one child or up to $6000 for two children who were taken care of while you worked.

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

Federal>Deductions and Credits>You and Your Family>Child and Dependent Care Credit

The childcare credit is not added to your refund.  It can only reduce tax owed.   If you do not owe any tax the childcare credit does nothing for you.  It will not be added to your refund.

OR-- there is the Child Tax Credit, with a refundable portion called the Additional Child Tax Credit.  That credit can be up to $2000 per child for children YOUNGER than 17, with a maximum refundable portion of $1500 per child, based on the amount of income you earned from working.

And.....there is credit called the Credit for Other Dependents---which you can get for a child over 16, or for other dependents including adults.

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...

The child tax credit and/or the credit for other dependents are used to reduce tax you owe.  

Look at your 2022 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