Child Tax Credit

[juelzmami860]

I am having a hard time understanding why I don't see that I will be receiving child tax credit or earned income credit for my 2 children.

i file as head of household and made less than the $49,399 which is what i see as the limit for a household of 3.

my children are 17 and 6. 

why would i not receive either one?

[xmasbaby0]

You might be confusing the child tax credit and the earned income credit.

You cannot get the child tax credit for a child who was 17 at the end of 2022.   You can only get the $500 credit for other dependents for him.

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 2022 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 2022?  If not,  you will not receive an income tax refund based on having dependent children.

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500.   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 $1500 per child.  If your child is older than 16 at the end of 2022, 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://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

And for the Earned Income Credit—-the rules are back to the “old” rules—

Those under 25 and over 65 without children are not eligible as they were uniquely in 2021.   And you cannot use your income from any earlier tax year to get the EIC for a 2022 return.  There is no “lookback” for 2022.  EIC for 2022 will be based on the income you earned by working in 2022.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

Look at your 2022 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

[juelzmami860]

Yes I did work. I earned less than $49,399.

I do have my children listed as living with me for the entire year and valid for employment. All i see is $16.00 for my 6 year old. 

[Vanessa A]

For 2022, a child must be under the age of 17 to qualify for the Child Tax Credit.  This means your 17 year old child would not qualify for the Child Tax Credit but may qualify for the Other Dependent Credit which is $500.

The limit for the Child Tax Credit is $200,000, not $49,000.  

Did you maybe get the Child Tax Credit and not the Earned Income Tax Credit?

Look at line 19 of your 1040 to see if you did get the Child Tax Credit and how much you received.  

If you are talking about Earned Income Credit you can look at line 27 of your return.  

You can see this using TurboTax  Online by logging into your return then clicking the following:

• Tax Tools
• Tools
• View Tax Summary
• Preview My 1040

[Vanessa A]

It sounds like you may not have enough of a tax liability to get the full credit.  Look at line 16 of your 1040.  If that number is $16, then that is all you would qualify for.  

The Child Tax Credit is non refundable credit.  This means, it will lower your tax liability to $0 but not result in a refund of more than you paid in. 

[xmasbaby0]

@juelzmami860 You are only telling us that you earned less than $49,399.   But we do not know how much you actually earned.  Take the amount you earned.  Subtract $2500 from that.  Then multiply the amount left over by 15%.  That is the amount of the refundable additional child tax credit that you can get, which will be on line 28.

[Critter-3]

Look at your 2022 Form 1040 to see the child-related credits you received ... you have a total of $2500 CTC & other credit used to reduce your tax liability (line 19)  then up to $1500 of the CTC that is not already used may become refundable.  So are you seeing that $16 on line 27 or 28 ?  

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

[DawnC]

Was your income from a W-2?   And have you already entered your W-2 wages?   Or was your income from self-employment or something else?

[juelzmami860]

The child tax credit says i am eligible for 2500.00 but then says credit limited to tax liability is 2484 so the additional child tax credit eligibility amount is 16.00

the EIC says both children qualify  for 1,490 but my return is far less than that 

[juelzmami860]

the amount i actually earned is 49,332.00

[Critter-3]

NO NO NO ... you are misunderstanding the credit ... you are eligible for $2500  OF WHICH  $2484 is used on line 19 to zero out your tax liability and the rest of the credit ($16) becomes refundable on line 28 and is part of your refund.    The total of $2484 + $16 = $2500  ... you got the entire credit split onto 2 lines.  This is different from 2021 where all of it was on line 28. 

[juelzmami860]

but the amount of my refund is less than 1,000 so thats not true. 

[DawnC]

Your Earned Income Credit is on Line 27 and will be added to the $16 (refundable child tax credit) as part of your refund.   Make sure you entered all of your withholding from your W-2.

[xmasbaby0]

The amount of Earned Income Credit for your two children is $16.   You made almost too much to get any EIC.  Earned income credit is on line 27.

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

[juelzmami860]

so i dont qualify for either one? EIC or tax credit other than that $16?