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marykings25
Returning Member

Child Tax Credit - Partially refundable only

Hello,

 

TT is telling me I have a $2000 child tax credit. However, I'm supposed to get a refund  from the IRS and I thought the CTC is only refundable up to $1400 (i.e., it can only increase a refund by $1400)?

 

If that is the case, how do I fix it on TT online?

 

5 Replies
macuser_22
Level 15

Child Tax Credit - Partially refundable only

If you are low income with little or no tax liability and do not qualify for the $2,000 Child Tax Credit then you might qualify for the Additional Child Tax credit which is 15% of earned income more then $1,200 up to a maximum of $1,400.

 

If you have a tax liability of at least $2,000 then you would qualify for the full $2,000 since it can only reduce the tax liability to zero and not more.

**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.**
marykings25
Returning Member

Child Tax Credit - Partially refundable only

 

Not sure I understand the answer. I'm not low income but thought a nonrefundable credit meant that the credit cannot be used to increase your tax refund. If the CTC is refundable only up to $1400 and I have a tax refund (vs. a tax liability), shouldn't TT only compute $1400 CTC instead of $2000?

 

 

 

marykings25
Returning Member

Child Tax Credit - Partially refundable only

How do I get TT to apply only the $1400? It doesn't give me the option 

macuser_22
Level 15

Child Tax Credit - Partially refundable only

For the child tax credit of $2,000 per child.

The child must have been no older than 16 at the end of 2019.

The amount of child tax credit you can receive is limited by your taxable income (1040 line 11a)
If your taxable income is zero, then you are not eligible for any child tax credit.

However, if you do not qualify for the Child Tax Credit, and if your earned income is greater than $2,500, you might be eligible for the Additional Child Tax credit. That amount is 15% of earned income greater then $2,500 up to a maximum of $1,400.

Too high of an income will reduce or eliminate the CTC also.
Married Filing Joint - $400,000
Single, Head of Household, or Married Filing Separate-- $200,000

The child tax credit will be reported on lone 13a on the 1040 form. Additional Child tax credit on line 18b on the 1040 form.

**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.**
macuser_22
Level 15

Child Tax Credit - Partially refundable only


@marykings25 wrote:

How do I get TT to apply only the $1400? It doesn't give me the option 


You don't because the CTC is $2,000, not $1,400.    The Maximum ACTC is $1,400.

**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.**
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