Why am I not getting the child tax credit? My return came to zero even though I had a baby in 2023 (2024)

FAQs

Why am I not getting the child tax credit? My return came to zero even though I had a baby in 2023? ›

My return came to zero even though I had a baby in 2023. You need to have taxable income to receive the child tax credit. It may be that your income is too low to qualify for the credit. You may qualify for the "additional child tax credit" if you don't qualify for the normal credit of $2,000 per child.

You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.

The Child Tax Credit is a nonrefundable credit. This means if your tax liability is $0, you will not receive this credit because there is no tax to reduce.

You will not get the childcare credit until (unless) you enter income earned from working. The credit does not work unless you enter your income first. If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.

Parents whose income comes solely from "unearned" income — such as interest and dividends, pensions and annuities, social security, unemployment, alimony or child support — do not qualify. Both the Child Tax Credit and the Additional Child Tax Credit phase out for high-income taxpayers.

If you have a child, you may be eligible for the Child Tax Credit. For 2023, the credit is up to $2,000 per qualifying child.

Under current law, roughly 19 million children get less than the full $2,000 Child Tax Credit or no credit at all because their families' incomes are too low. Most of these children live in families with incomes of less than $40,000.

You need to have taxable income to receive the child tax credit. It may be that your income is too low to qualify for the credit. You may qualify for the "additional child tax credit" if you don't qualify for the normal credit of $2,000 per child. This will allow you to see if you have any income tax or credits.

Specifically, the Child Tax Credit was revised in the following ways for 2021: The credit amount was increased for 2021. The American Rescue Plan increased the amount of the Child Tax Credit from $2,000 to $3,600 for qualifying children under age 6, and $3,000 for other qualifying children under age 18.

Most errors happen because the child you claim doesn't meet the qualification rules: Relationship: Your child must be related to you. Residency: Your child must live in the same home as you for more than half the tax year. Age: Your child's age and student or disability status will affect if they qualify.

Why couldn't I claim my child on taxes? ›

Make sure your dependent meets the IRS requirements. Generally, the IRS requires that the child is under the age of 19 (or under 24 if a full-time student), lives with you for more than half the year, and does not provide more than half of their own financial support.

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 2023 make sure you said he lived with you the whole year.

The credit rate phases down as income increases until it reaches 20% for families with an AGI of over $43,000, meaning the maximum credit rate available to families at this income level is $600 for one dependent or $1,200 for two or more dependents (20% of $6,000 in expenses).

It sounds like you may have entered the child as an other dependent rather than a child. Other dependents age 18 or older would qualify for a $500 credit. Make sure the birth date is entered correctly. Go back through the dependent section and make sure you answered all the questions correctly.

You or your spouse don't have a valid SSN. Your AGI is too high: your earned income and AGI exceed certain limits, you may not be eligible for the EIC. Your investment or foreign income is too high: Both scenarios disqualify you from taking the credit.

You do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year. If you do not have income, and do not meet the main home requirement, you will not be able to benefit from the Child Tax Credit because the credit will not be refundable.

Dependent Exemption: each dependent claimed on a tax return is typically worth $2,000. This means that for every dependent you qualify to claim, you can reduce your taxes by this amount, potentially resulting in lower tax liability or a higher tax refund.