Why am I not getting the child tax credit

[Anaverasg]

I have two dependents and made more than 2500 and I’m still not getting it. I want to know what I did wrong or what can I put down to receive it. 

[xmasbaby0]

The refundable part--called additional child tax credit--is based on how much income you had from working.   Have you entered income from working at a W-2 job or from self-employment?

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 2024 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 2024?  If not,  you will not receive an income tax refund based on having dependent children.

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1700.   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 $1700 per child. If the amount you earned was too low, you will not get the full $1700.

 If your child is older than 16 at the end of 2024, 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://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6x...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

Look at your 2024 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

[Bsch4477]

Do you see an amount on line 28 of your 1040?  Your credit is limited because part is non refundable so if you have no tax liability you can’t use it. The rest is additional tax credit and that is based on multiplying your earned income over $2500 by 15 percent. 

[New08]

I just tried to file and our federal refund is normally between $3k - $3600;  but this year it’s only $86. And I noticed it shows the child tax credit line of $1000 instead of $4000 like it shows on my 2023 taxes. 

[xmasbaby0]

@New08 Did you have two kids who turned 17 in 2024?   If so, you lose the child tax credit for those children and get the $500 credit for other dependents instead.

[New08]

no they are still 13 and 15 years old

[xmasbaby0]

@New08 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 2024 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.

[New08]

Yes I have entered my children’s information correctly

[xmasbaby0]

@New08 If they are under age 16, and they have Social Security numbers, you have entered something else incorrectly if you are not getting the full $2000 per child on line 19.     Check again.  Make sure you did not check the box that says their SSN's are not valid for employment.    Check again for that question that asked if they paid for over half their own support --- you have to say NO.

Sometimes it helps to delete the dependent and start by entering them again.

[cher13]

I have done everything you’ve said. I made more than $2,500, I entered my child’s information correctly. The boxes for my child’s SSN and if they take care of themselves is NOT selected. I’ve even deleted the dependent and re-added them. It tells me I qualify for the $2,000 child tax credit, but it doesn’t add it to my federal refund amount. I filed the exact same last year, nothing at all has changed, and I received $5k more last year. Please explain why I’m not receiving anything for my child this year. 

[Hal_Al]

You say "made more than $2,500".  But, that's not enough info.  It depends on how much more than $2500 you made.

 What is on lines 1z, 18, 19 and 28 of your form 1040?

Line 1z is your earned income.

Line 18 is your tax liability. 

Line 19 is your "regular" Child Tax credit. It will not be more than line 18.

Line 28 is your Additional Child Tax Credit (ACTC). It's calculated based on what's on lines 1z and 19.   The  ACTC is calculated on Schedule 8812 and  is basically 15% of your earned income over $2500, but not more than $1700.

[Wit2]

I have the same issue. I think there is glicted in software desktop version.

[Hal_Al · Accepted solution]

There is no glitch in the software.

It's just complicated and expectations are sometimes unrealistic. Many people just don't get the full $2000 per child. It's easy to make mistakes. 

 There are 7 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 with you for 6 months and 1 day, you need to mark that the child was with you 7 months. 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.
4. Your income is too low.  The child tax credit  (CTC) is 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 28 of form 1040 (2021- 2024) instead of line 19. The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1700 (2024) ($1600 for 2023, $1500 for 2022) per child, not $2000.
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 tax (FICA), early distribution penalty or another type of additional tax, for which the CTC cannot be used.
7. During covid (2021), the child tax credit was expanded and easier to get. That was temporary and those relaxed benefit rules are no longer available.

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

[Wit2]

I thought it was a glitch, but it is not. Here is what I found out: the IRS makes changes to people's W-4 forms every year, lowering federal withholding while increasing Social Security to offset it. My company did this quietly, and most people do not check their W-4 annually. They do this so they don’t have to refund a large amount of money during tax season. You will need to make your own calculation and pay additional taxes to IRS per paycheck.

[maine5]

I have the same issue.  There is different a glitch.  I put all my info into TaxAct and they are giving me the full child tax credit.  I research the information on the IRS.  I am filing jointly and our AGI was under $400,000. Our kids are 12 and 8.  However, Turbo Tax is only giving us $1,000.  There is a glitch!