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Should I be getting a refund with no income, and why am I not able to get anything towards the child tax credit if I have two qualifying children?

I got the tax credit last year for my one child but I just had another child in November and have gotten nothing towards her. I am a stay at home mom so I have no income.
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3 Replies

Should I be getting a refund with no income, and why am I not able to get anything towards the child tax credit if I have two qualifying children?

for 2022 - no income - no income tax liability. the general child tax credit is limited to your tax liability. the additional child tax credit is limited to 15% of earned income in excess of $2,500. you have none. 

Should I be getting a refund with no income, and why am I not able to get anything towards the child tax credit if I have two qualifying children?

Because of covid, it was possible to get Child Tax credit, in 2021, even if you had no income.

For 2022, the old (standard) rules are back. 

 

The money you hear about people getting for just filing a tax return claiming kids requires them to  have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.  Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. The child tax credit does not "kick in" unless you have at least $2500 of earned income.

 

A child can be the “qualifying child” dependent of any close relative in the household. If you live with someone else, e.g. your parents, it may be better if they claim your child.

Instead, you could allow the non-custodial parent to claim the children.  Non-custodial parents are allowed to claim the child tax credit, but not the Earned income credit.

 

If you are a student, over age 23, and are not claimed as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit. That credit is not dependent on having either kids or earned income. You must be at least a half time undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

Should I be getting a refund with no income, and why am I not able to get anything towards the child tax credit if I have two qualifying children?

The child tax credit has changed drastically from 2021 to 2022. 

 

 If you did not work in 2022, 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; 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.  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...

**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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