Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
dtswampa
Level 1

TT says I am not eligible for the child tax credit. AGI is $70K with 2 kids (15 and 5) who qualify and one (17) who should get the dependent credit. Why is it saying no

 
1 Best answer

Accepted Solutions
xmasbaby0
Level 15

TT says I am not eligible for the child tax credit. AGI is $70K with 2 kids (15 and 5) who qualify and one (17) who should get the dependent credit. Why is it saying no

Have you already entered your W-2?  Did you enter the children's SSN's?  What message did you get from TT about why you are not getting the CTC?  Do you have a tax liability?  Did the children live with you?

 

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 2019, even on the last day of 2019, 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 2019 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 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)

**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.**

View solution in original post

3 Replies
xmasbaby0
Level 15

TT says I am not eligible for the child tax credit. AGI is $70K with 2 kids (15 and 5) who qualify and one (17) who should get the dependent credit. Why is it saying no

Have you already entered your W-2?  Did you enter the children's SSN's?  What message did you get from TT about why you are not getting the CTC?  Do you have a tax liability?  Did the children live with you?

 

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 2019, even on the last day of 2019, 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 2019 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 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)

**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.**

View solution in original post

dtswampa
Level 1

TT says I am not eligible for the child tax credit. AGI is $70K with 2 kids (15 and 5) who qualify and one (17) who should get the dependent credit. Why is it saying no

Ah, it was as simple as I had not actually confirmed my children's info from last year (I thought it automatically transferred).  As soon as I did that, I went from owing $2500 to a $2000 refund.  Thanks for the help!

xmasbaby0
Level 15

TT says I am not eligible for the child tax credit. AGI is $70K with 2 kids (15 and 5) who qualify and one (17) who should get the dependent credit. Why is it saying no

Yay!  You are welcome!

**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.**
Dynamic AdsDynamic Ads
Privacy Settings
v