Minnesota Child Tax Credit

Forum|Forum|1 year ago
February 25, 2025
1 reply
9 views

I have a client that does not qualify for the EIC because she lives with the child's dad and he makes more money. When entering the dependent information, I have made the election to suppress the EIC but to still calculate the Child Tax Credit. The CTC calculates on the Federal Return but the box on line 10a of the MN Form M1DQC does not populate, thus suppressing the CTC on the MN Return. Has anybody else had this issue?

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T

TaxGuyBill

Level 15

@DCTAXPRO wrote:

she lives with the child's dad

Only the custodial parent can claim the Minnesota Child Tax Credit. Form 8332 does not allow the credit.

D

DCTAXPROAuthor

Level 2

She lives with BOTH of them; they are not married. The mom & dad are BOTH custodial parents. She just doesn't qualify for EITC because of the tie-breaker rules. She qualifies for the Federal CTC. Where does is state that the MN Child Tax Credit only goes to the custodial parent?

T

TaxGuyBill

Level 15

@DCTAXPRO wrote:

She just doesn't qualify for EITC because of the tie-breaker rules.

Where does is state that the MN Child Tax Credit only goes to the custodial parent?

The tie-breaker rules don't apply if they agree to who can claim the child.

If they agree that she can claim the child, she can also claim the Earned Income Credit. If they both claim the child, he would 'win' and she couldn't even claim the child at all (she wouldn't get the Child Tax Credit).

Is he trying to claim the child in any way, such as for Head of Household?

The Instructions that are part of the form says that Form 8332 does not qualify for the credit.

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