W-2

[KatlynnR12]

Last year I filed as Head of house with 1 dependent (child under age of 6) my income was only $2,340. My refund was $5,560. This year I filed Head of house, 1 dependent same as I die last year but my income was  more this year $3,704. And my federal withholdings says 0? And my estimated refund is only 1,432? Why is my return so low compared to last year also why does my withholding say 0? I did not change my withholdings. I typed 0. What has happened?

[xmasbaby0]

The tax laws changed.

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

[KatlynnR12]

All of my child's information is correct. He was born in 2021. And I filed him on my taxes last year with no problems. Also it says I earned the child tax credits. I do not understand why my federal withholdings are 0.? 

[JohnB5677]

The rules for the child tax credit have changed.  The maximum amount of the child tax credit is now $2000; the refundable “additional child tax credit” amount is $1500.  

 In order to get the credit, you must have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%.

 The guidelines are:

• Be under age 17 at the end of the year.
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
• Provide no more than half of their own financial support during the year.
• Have lived with you for more than half the year.
• Be properly claimed as your dependent on your tax return.

You will get a non-refundable credit up to $2000 per child.  That means the credit cannot be more than your actual tax bill. However, if your child tax credit was limited by your tax bill you may be able to get the remainder up to $1500 as a refundable Additional Child Tax Credit.  

  IRS Child Tax Credit

What is the Child Tax Credit

 You can see what is posted by going to:

 On the menu bar on the left that shows.

1. My Info
2. Federal
3. State
4. Review
5. File
6. Select Tax Tools
7. On the drop-down select Tools
8. On the popup menu
9. Select View Tax Summary
10. On the left sidebar
11. Select Preview my 1040.

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27.

Additional Child Tax Credit line 28