This credit is for people who have a qualifying child. A qualifying child for purposes of the child tax credit must be all of the following:
Age - The child must have been under age 17 on Dec. 31, 2024.
Enhanced child tax credit - The initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where modified adjusted gross income exceeds $200,000 ($400,000 in case of a joint return). The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,600.
Relationship - The child must be the taxpayer's son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother or half-sister. The child may be a descendant of any of these individuals. A qualifying child could also include grandchildren, nieces or nephews. Taxpayers would always treat an adopted child as their own child. An adopted child includes a child lawfully placed with them for legal adoption.
Support - The child must have not provided more than half of their own support for the year.
Dependent - The child must be a dependent that a taxpayer claims on their federal tax return.
Joint return - The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
Citizenship - The child must be a U.S. citizen, U.S. national or a U.S. resident alien
Residence - In most cases, the child must have lived with the taxpayer for more than half of 2024
Yes. The Child Tax Credit can only be claimed by the parent claiming the exemption. In this case the noncustodial parent would qualify for the dependency exemption and therefore the child tax credit.
You are not receiving the child tax credit because your daughter turned 18 in the tax year. This credit is for children under the age of 18 as of the end of the tax year.(Example: In 2024 you are filing the 2023 tax return, your child must still be age 16 as of December 31, 2023 in order to qualify.)
There are a couple of reasons why you could qualify for EIC but not for the child tax credit. One, your child could be over 18, therefore disqualifying you for the credit. Two, if you did not have any taxes owed after the standard deduction and exemptions, then you would not get the child tax credit. The child tax credit reduces the amount of tax that you owe. If you don't owe any, there is nothing to reduce. The earned income credit is a refundable credit, as long as you qualify for it you will get it whether you still owe tax or not.
No, only the parent who is claiming the exemption can claim the Child Tax Credit.
The additional child tax credit allows a portion of the child tax credit to be refundable for certain taxpayers. Taxpayers must complete Form 8812 to compute the refundable portion of the credit. Taxpayers with one or more qualifying children may be able to claim the additional child tax credit.