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ukfan1986-
New Member

Why am I not receiving the standard deduction tax credits for my 2 children?

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

 There are 6 possible reasons; you aren’t getting the Child Tax credit (CTC):

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 2018, you have to answer that he lived with you all year.

2. Your child may be  too old (over 16). You can still claim your child. 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.

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.

4. 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 17 of form 1040 instead of line 12.   The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500.

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, early distribution penalty or another type of additional tax, for which the CTC cannot be used.


View solution in original post

8 Replies
DoninGA
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

Personal exemptions are no longer used due to the changes in the tax code.  If the children are under the age of 17 they would be eligible for the Child Tax Credit.  What specifically are you referring for the children?
ukfan1986-
New Member

Why am I not receiving the standard deduction tax credits for my 2 children?

The app basically says my two young children don’t qualify for the child tax credit. We meet all guidelines. And it does not give an “explain why” explanation. It says the answer is not available right now.
ukfan1986-
New Member

Why am I not receiving the standard deduction tax credits for my 2 children?

Thank you for responding. I’m very curious. I’ve double checked my personal info selections several times.
VolvoGirl
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

There are a couple questions you could have answered wrong under My Info or Personal Info.  Go back to My Info or Personal Info and click Edit by Dependents and then Edit by their name.  Check the birthdate and make sure you have entered their ssn.

Or the one that says did your CHILD pay for most of their living expenses?   Answer NO, it's not asking if you did.

If you can't get your child to qualify try completely deleting him and then re-add him.  That sometimes will clear something out.

If your child was born during the year (even on Dec 31) is considered to have lived with you all year. When it asks about how long they lived with you, be sure to answer all year (pick the top box for the Whole Year). You will have to have their SS# before you can file.  

Check and make sure you didn't accidentally check the box that says you (or your spouse) can be claimed as a dependent on someone else's return.  You can't claim any dependents if you (or your spouse) is a dependent.   People are saying that if you transferred from last year then one of the spouses came over with it checked that you can be claimed.
ukfan1986-
New Member

Why am I not receiving the standard deduction tax credits for my 2 children?

I feel like I’ve already done what you suggested but will try again. Yes, we have used for a few years so it may just need to be wiped clear and all reentered. Thank you!
Texas Roger
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

Also if you and the other parent don't live together and you are releasing the dependency exemption to the other parent, that parent is the one who can claim the child tax credit.
macuser_22
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

You did not say how old the children are.  They cannot be older than 16 for the child tax credit.   You also must have a tax liability that can be credited.    Have you entered your income yet?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Hal_Al
Level 15

Why am I not receiving the standard deduction tax credits for my 2 children?

 There are 6 possible reasons; you aren’t getting the Child Tax credit (CTC):

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 2018, you have to answer that he lived with you all year.

2. Your child may be  too old (over 16). You can still claim your child. 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.

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.

4. 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 17 of form 1040 instead of line 12.   The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500.

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, early distribution penalty or another type of additional tax, for which the CTC cannot be used.


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