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Wo dependents (ages 14 and 15), w/ SSN, living with me all year, $31,000 taxable income, married filing jointly. Why is my child tax credit only $161?
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Wo dependents (ages 14 and 15), w/ SSN, living with me all year, $31,000 taxable income, married filing jointly. Why is my child tax credit only $161?
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.
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