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posted Apr 12, 2023 10:24:30 PM

Why don't my children count for the child tax credit when we earned approximately $27,000 last year?

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3 Replies
Level 15
Apr 12, 2023 10:38:12 PM

You paid extra for Live. Ask your expert.https://ttlc.intuit.com/community/expert-review/help/how-do-i-connect-with-a-tax-expert-in-turbotax-...

 

 

Expert Alumni
Apr 16, 2023 5:49:54 AM

For your dependent children to qualify for the Child Tax Credit, each dependent child must meet all of these requirements:

 

  • Be under age 17 at the end of the tax year
  • Is your child, stepchild, foster child, adopted child, sibling, step sibling, half sibling, or a descendant of any of them (for example, a grandchild, niece, or nephew)
  • Has their own Social Security Number
  • Lived with you for more than half the year
  • Didn't support themselves (did not pay more than half their own expenses)
  • Is a U.S. citizen, U.S. national, or U.S. resident alien
    • Residents of Canada or Mexico do not qualify

In 2022, the tax credit will be refundable only up to $1,500, depending on your income. You must have earned income of at least $2,500 to be eligible for the refund.

 

TurboTax software will ask you simple questions and give you the tax deductions and credits for which you are eligible based upon your answers.

 

See also this TurboTax Help.

 

@adhi-hsv 

Level 15
Apr 16, 2023 6:19:35 AM

You may just be looking in the wrong place.

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 & 2022) 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 $1500 per child (not $2000).