Question

Can anybody explain why I do not qualify for the child tax credit? I made $160 over the minimum amount required and all of the other requirements. For small business

Forum|Forum|1 year ago
February 19, 2025
2 replies
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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 2024 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 2024? If not, you will not receive an income tax refund based on having dependent children.

The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1700. In order to get that credit, you have to have income from working.

Take the amount you earned from working. Subtract $2500. Multiply the rest by 15%. That is the additional child tax credit per child that you can get—- up to the maximum of $1700 per child. If the amount you earned from working was low, you will not get the full $1700 per child.

If your child is older than 16 at the end of 2024, you do not get the CTC. But you may still get the non-refundable $500 credit for other dependents instead.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-tax-credit/L2lNhfGDl_US_en_US?uid=m68dfq2u

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6xFeMFEf_US_en_US?uid=lqnuygah

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

And for the Earned Income Credit—-

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/qualifications-earned-income-credit-eic-eitc/L7w4BFP32_US_en_US?uid=m62rmz09

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://www.irs.gov/pub/irs-pdf/p596.pdf

Look at your 2024 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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wagner-kaitlynn17Author

My total income for the year was about $2,600

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xmasbaby0

If your total income from working in 2024 was only $2600, then you might be barely eligible for about $15 of additional child tax credit. But even that is only if the $2600 was profit and not loss.

Additional child tax credit is calculated this way:

Amount you earned from working minus $2500 --- so now you have $100 toward additional child tax credit.

$100 x 15% = $15

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

DoninGA

Is your net income (Income (minus) Expenses) from the business at least $2,500? If not, you are not eligible for the child tax credit in 2024.

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wagner-kaitlynn17Author

I did not have much for expenses last year since it is an In-Home daycare. So yes, with the minimal expenses I had for the year it was still above the $2,500. But my total income for the Year was only about $2,600.