Am I eligible for the Dependent Child Tax Credit in 2021 if I filed for an extension and did not file my 2021 return until August 2022?

[caitlinmj29-gmai]

We moved abroad in August 2021, but lived in the US Jan. 1, 2021-Aug. 17, 2021 (more than the required 6 months to qualify for this credit). I am trying to figure out why we didn't receive the Dependent Child Credit even though we qualified.

[xmasbaby0]

There is no federal credit called the Dependent Child Credit.   Are you asking about the Child Tax Credit?

Try the IRS interactive assistant to see if you qualified

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

[TomD8]

Or are you referring to the Child and Dependent Care Credit?  If so, you can check your eligibility here:

https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

[caitlinmj29-gmai]

@xmasbaby0 @TomD8  Yes, thank you both for clarifying. I am referring to the Child Tax Credit. 

I completed the IRS interactive assistant and determined that my child is a qualifying person for Child Tax Credit purposes. However, I don't think I received that credit on my 2021 Federal return.

I received a letter in the mail from the IRS this week that we "may be eligible to claim credits and a refund for the Recovery Rebate Credit, Child Tax Credit, and Earned Income Tax credit." When I looked at my 2021 return, it appears that Line 33 (Total Payments) amount adds up to exactly the amount that was withheld from our salaries in 2021, and does not appear to include the $3,600 Child Tax Credit, even though our child is a qualifying person and our household meets all the requirements of which I am aware. Additionally, the amount of our refund this year is exactly the amount withheld from our salaries less the amount of Federal income tax owed.

On what line of our 1040 would that credit appear, if it was calculated in on our TurboTax return? Is there somewhere else I should be looking to determine whether or not we actually received the Child Tax Credit in our 2021 return?

Thank you so much for your help!!

[xmasbaby0]

The child tax credit appears on line 28 of your 2021 Form 1040.

[xmasbaby0]

Was your income too high to get the credit?

Q C2. Can my Child Tax Credit amount be reduced based on the amount of my 2021 income? (added June 1...

A2. Yes. The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit to $2,000 per child.

• That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

For additional information on the amounts of modified AGI that reduce the 2021 Child Tax Credit, see Q C4 and Q C5, below.

Q C4. How does the first phaseout reduce the 2021 Child Tax Credit to $2,000 per child? (added June ...

A4. The Child Tax Credit begins to be reduced to $2,000 per child if your modified AGI in 2021 exceeds:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

[caitlinmj29-gmai]

@xmasbaby0 Our AGI was well below the threshold for a reduced Child Tax Credit, so I am confident we did not earn too much to qualify for the credit.

The only other possible explanation for us not qualifying is because we claimed the foreign earned income tax exemption for the salaries we earned from September through December of 2021 on our 2021 Tax Return. However, all three of us resided in the United States for 7.5 months in 2021, and 6 months is the threshold for the Child Tax Credit. 

Regardless, Line 28 on our 1040 is blank, even though there is a check in Dependents (box 4) on the line with our son's name and information. The 1040 was completed using the TurboTax software. As best I can tell we qualify for this credit and it was not part of our 1040 return. If so, what are my next steps on getting this resolved? 

Again, thank you so much for your help and insight!

[TomD8]

Did you perhaps receive an Advance Child Tax Credit Payment in 2021?

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

[caitlinmj29-gmai]

@TomD8 I did not receive any advance payments, however was able to discern that I did receive the credit on my 2021 return with the help of an expert at TurboTax customer service. My credit was not listed on Line 28, but was rather listed on Line 19 and had the credit reflected in the Line 22 calculation.

Thank you so much for your help!