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Why is there no child tax credit available for taxpayers with only passive income?

accounting2
Level 2
 
5 Comments 5
qbteachmt
Level 15

Does your client qualify:

https://www.irs.gov/credits-deductions/individuals/child-tax-credit

https://turbotax.intuit.com/tax-tips/family/7-requirements-for-the-child-tax-credit/L3wpfbpwQ

 

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IRonMaN
Level 15

Or do you mean dependent care credit?


Slava Ukraini!
accounting2
Level 2

Thank you. No. The additional child tax credit is not showing up as refundable when there is no tax liability and/or earned income. Is that a software issue, or am I missing some changes with the ruling?

George4Tacks
Level 15

When all else fails, read the instructions. https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Maybe start on page 6


Here's wishing you many Happy Returns
qbteachmt
Level 15

"The additional child tax credit is not showing up as refundable"

Did you use the resources being referenced? You need to confirm for yourself, if you are questioning the software or your entries or your taxpayer's eligibility.

This is in the link I provided:

"What if the credit exceeds my 2022 tax liability?

For 2022, 2020, and earlier tax years, 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.

  • Up to $1,500 per qualifying child in 2022 is refundable with the Additional Child Tax Credit.
  • You can find out if you're eligible for this refundable credit by completing the worksheet in IRS Form 8812."
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