Why does it till me I'm not qualified for the child tax credit when I have 3 children, ages 1 (twins) and 4.

[DoninGA]

Have you entered any taxable income?

[xmasbaby0]

If you are working on a 2022 tax return, you need to understand that the criteria for getting the child tax credit for 2021 and for 2022 are very different.   For tax year 2021 you could get the CTC even if you did not work or have any other income and the amount for the CTC was a lot more.  For 2022 the CTC is back down to the lower amount of $2000, and you will not get the credit if you do not have taxable income.   The credit can be used to lower the amount of tax you owe, and there is a refundable amount that can be added to your refund, but it is based on how much you earned by working.   

Since you will not receive any W-2's until employers issue them by the end of January, you probably have not entered any of the income you earned yet, so it is saying you cannot get the CTC.  If you worked and enter W-2's or 1099's that may change.

[NCperson]

@patsybarr70 - unlike 2021, you must have a tax liability (line 18 of Form 1040) or earned income that exceeds $2500 to be eligible for  CTC. 

here are the rules: 

•Child Tax Credit -  $2,000 per child, limited by tax liability on line 18 of Form 1040

PLUS 

• Additional child tax credit” - lower of

a) $1,500 per child

b) 15% of earned income over $2,500

c) $2,000 per child less non-refundable credit

so your maximum tax credit is $6,000, but if you do not earn at least $2500, the tax credit is zero.... that is same way it worked prior to 2021. 

[Hal_Al]

 There are 6 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 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 a different line  of form 1040. The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1400 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.

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

[NCperson]

@Hal_Al - terrific write-up..... once small correction....

"The ACTC is a maximum of $1400 per child (not $2000)."

it's now $1500...... it gets adjusted for inflation. (which is interesting because the overall $2000 isn't adjusted for inflation).