What if the credit exceeds my tax liability?
For tax years prior to 2018:
The Child Tax Credit is nonrefundable; if your credit exceeds
your tax liability, your tax bill is reduced to zero and any remaining unused
credit is lost. However, you may be able to claim a refundable Additional Child
Tax Credit for the unused balance. You can find out if you're eligible for this
refundable credit by completing the worksheet in IRS Form 8812.
For tax years after 2017:
The new Child Tax Credit is worth up to $2,000 per qualifying
child with a refundable amount of up to $1,400 per qualifying child. The
phaseout for the credit begins at $200,000 ($400,000 for joint filers).
Remember, when you file your taxes with TurboTax, we’ll ask
simple questions about you and your kids and figure out exactly how much of the
Child Tax credit you’re eligible to receive.
The Child Tax Credit is a non-refundable credit.
This means that if your tax liability has already been reduced to 0, then you
will not further benefit from this credit.
It is also reduced by other non-refundable credits you may be
receiving (such as the Child and Dependent Care Credit)
The Additional Child Tax Credit is a refundable credit
(up to $1,400) and can be refunded to you even if your tax liability has been
reduced to 0.
If you'd like to see how this works on your Form 1040, follow
the instructions below:
1.) On the left-hand side of your screen, click Tax
Tools
2.) Click Tools
3.) On the window that pops up, click View Tax Summary
4.) On the left-hand side of your screen, click Preview
My 1040.
Your Child Tax Credit will be on line
12a. If the amount that is on line 12 equals what is on line 11, then your
tax liability is 0 and this is why you did not receive the child tax
credit.
If you have an amount on line 17b, this means that
you received the Additional Child Tax Credit.
