What do I do if I don't have any earned income but I have a dependent to claim?

[jillianpoplin1]

I want to file taxes to receive any tax credits for my dependent but how do I do that if I haven't earned any income this year ? I have only collected benefits from the state.

[DoninGA]

If you do not have earned income from work of any kind in 2023 then you are not eligible for any type of tax credit on a 2023 tax return which requires earned income,  This include the Child Tax Credit, Child and Dependent Care Credit and the Earned Income Tax Credit.

[xmasbaby0]

There has only been one tax year----tax year 2021-- in which you could get the child tax credit as a refundable credit and receive money from a tax return even if you did not work, but claimed a child as a dependent.   Tax year 2021 was unique----the "old" rules are back.  If you did not work and earn income from working, then you are not eligible to receive a refund for claiming a child as a dependent.  Perhaps someone else who has been supporting you and/or your child can claim you and the child as dependents, and get tax credits.

[jillianpoplin1]

Well I was provided this article and so it's just a little confusing as to what to expect. 

TRAVERSE CITY, MI, US, July 20, 2023/- The Child Tax Credit, a crucial lifeline for families, has been expanded in 2023 and 2024 to include parents with no income.

This significant advancement ensures that eligible families facing financial hardships can access the benefits of the Child Tax Credit, providing much-needed support to help raise and care for their children.

By extending this financial assistance to families with no income, the government aims to create a more inclusive and supportive environment for all families.

Key highlights of the Child Tax Credit with no income in 2023 and 2024 include:

Expanded Eligibility: The Child Tax Credit expansion now includes families with no income, offering financial relief to parents who are currently unemployed or facing economic challenges. Low-income parents may qualify for the credit even if they have no taxable income.

Fully Refundable Credit: The Child Tax Credit is now fully refundable, meaning that eligible families can receive the full amount of the credit as a refund, even if it exceeds their total tax liability.

This refundable feature ensures that families with no income can benefit fully from the credit, providing essential financial support.

Increased Credit Amount: The expansion raises the maximum credit amount, offering more financial assistance to eligible parents.

Families can receive a credit of up to $2,000 per qualifying child, with an additional $600 for children under the age of 6, making the Child Tax Credit a valuable tool for covering child-related expenses.

The Child Tax Credit expansion with no income for 2023 and 2024 represents a significant step toward supporting families in times of economic uncertainty.

By providing financial assistance to parents with no income, the government aims to alleviate financial burdens and create opportunities for a brighter future for all families.

[jillianpoplin1]

I support myself and my daughter through temporary assistance for needy families. I receive a very small amount each month and the food money then I have a housing voucher through the Center of Hope and safety and I pay just like a little portion of the rent but I have to pay also utilities and supplies and everything else for my daughter and I don't receive any child support. I know that the state benefits are not taxable so I'm just trying to figure out if the article is correct and if it is how to go about filing when it's time. 

[xmasbaby0]

@jillianpoplin1 Sorry----this is confusing---but you say you had NO income from working.  That means you are not eligible for the child tax credit.

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 2023 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 2023 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 the amount you earned was too low, you will not get the full $1500.

 If your child is older than 16 at the end of 2023, 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 2023 return.  There is no “lookback” for 2023.  EIC for 2023 will be based on the income you earned by working in 2023.

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

[Critter-3]

 There is the CTC and the ACTC are 2 parts of the same credit ... if you have zero earned income then your credits would be zero.

Additional child tax credit
If you qualify for the CTC but can't take full advantage because you don't owe taxes or owe less than your credit amount, you may be able to get a partial refund by claiming the additional child tax credit.

To claim the ACTC, all of the above income and dependent criteria must be met, but there are also a few more rules:

You must either have an earned income of at least $2,500
[3]
or have three or more qualifying dependents
[4]
. Earned income typically means money from jobs or self-employment. It does not include money from passive sources such as dividends, pensions, welfare or unemployment
[5]
.

You or your partner (if married filing jointly) cannot exclude foreign-earned income from your taxes by filing Form 2555 or Form 2555-EZ
[6]
.

The IRS figures your additional child tax credit amount by multiplying your earned income above $2,500 by 15%. You can claim that number or however much of the CTC credit you were entitled to but couldn’t fully use, whichever number is less. But keep in mind that the maximum refund you can get for the 2023 tax year is capped at $1,600 per qualifying dependent.

If you have three or more dependent children, the math can be more complex. See Schedule 8812 for more details.

https://www.nerdwallet.com/article/taxes/qualify-child-child-care-tax-credit#:~:text=For%202023%2C%2...).