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Child Tax Credit Not Calculating Refundable credit for a Qualified Child

Halloween
Level 1

Please assist how to enable PTO to calculate the refundable child tax credit.  TP is filing 2018 MFS and a line 10 taxable income of $2,242 with a line 11 Tax of $24.  But no refundable Child tax credit? Thanks

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George4Tacks
Level 15

Look at form 8812 and see if you can find an error. How old is the child?


Answers are easy. Questions are hard!

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7 Comments 7
George4Tacks
Level 15

Look at form 8812 and see if you can find an error. How old is the child?


Answers are easy. Questions are hard!
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TaxGuyBill
Level 15
The refundable part of the credit is partially based on "earned" income?  Does the taxpayer have enough "earned" income to qualify for the credit?
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Halloween
Level 1
@George4Tacks and @TaxGuyBill Many thanks for your comments and suggestions.  It seems to me that the error is the inability to mark the director’s fee (it is more than $2,500 and child is below 17) as earned income as such income is entered in the other income section.  Do you know how to label such income as earned income in Schedule 1 line 21? Thanks again for your time!
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TaxGuyBill
Level 15
You need to determine if it is actually "earned" or not.  If it is, report it on Schedule C (and it would be subject to SE tax).
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Halloween
Level 1
Thanks.  Will report the fee on Schedule C and pay SE tax.  The SE tax will wipe out the refundable credit or the refundable credit will decrease the SE tax.
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George4Tacks
Level 15
@Halloween  You indicated you have entered "other income section." Did you not see the item right above that entry? "Income subject to self employment tax"
Schedule C is the preferred entry, but the one I just mentioned is quicker.

Answers are easy. Questions are hard!
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Halloween
Level 1
Great suggestion.  But will go through the preferred entry Sch C at this time
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