Why am I only getting $500 child tax credit instead of $3,000? wife and I combined made $117,000. (2024)

FAQs

Why am I only getting $500 child tax credit instead of $3,000? wife and I combined made $117,000.? ›

wife and I combined made $117,000. 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 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 is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1600 per child. If the amount you earned was too low, you will not get the full $1600. If your child is older than 16 at the end of 2023, you do not get the CTC.

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.

How to get the rest of the credit. The only way to get the full amount of any remaining Child Tax Credit for which you are eligible is to file a tax return for 2021. When you are ready to file, you can use childtaxcredit.gov to find free assistance for filing to receive your Child Tax Credit.

To qualify for the Child and Dependent Care Credit, ALL of the following must be true: Your dependent is listed (and is either under age 13 or is marked as disabled). You have earned income. Your spouse (if filing jointly) also has earned income, is a full-time student, or is disabled.

The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for: Dependents of any age, including those who are age 18 or older. Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.

For the 2024 tax year (tax returns filed in 2025), the child tax credit will be worth $2,000 per qualifying child, with $1,700 being potentially refundable through the additional child tax credit.

Calculating the amount of the Child Tax Credit requires a few key numbers. Take the number of children that qualify for the tax credit and multiply this by $2,000 to calculate the total potential credit.

That year, the child tax credit was temporarily expanded to give families up to $3,600 in monthly checks as a form of pandemic relief. The credit was also available for the first time ever that year to the nation's poorest families who don't file income taxes.

Why is my dependent care credit so low? ›

These are your "allowable expenses." Your credit is a percentage of your allowable expenses. The higher your income, the smaller your percentage, and therefore the smaller your credit. There is no upper limit on income for claiming the credit for tax years except for 2021.

There are many events that may reduce your refund, including: Starting an additional job (especially self-employment) Getting a significant raise, but your W-4 staying the same. Selling stock, crypto, or other investments.

The child tax credit is a credit for having dependent children younger than age 17. The Earned Income Credit (EIC) is a credit for certain lower-income taxpayers, with or without children. If you're eligible, you can claim both credits.

The maximum amount of the child tax credit is $2,000; for the 2023 tax return, the refundable amount is $1,600 depending on your income. For 2023, you must have earned income (income from a job) of at least $2,500 to be eligible for the refund.

The maximum amount of the credit is $2,000 per qualifying child. Taxpayers who are eligible to claim this credit must list the name and Social Security number for each dependent on their tax return. The child must be younger than 17 on the last day of the tax year, generally Dec 31.

To claim the credit, you'll have to list on your tax return the name, address, and Social Security number or Employer Identification number of the people you pay for dependent care, so be sure to get this information. You must also file IRS Form 2441, Child and Dependent Care Expenses with your tax return.

If a qualifying child does not have an SSN, you will not be able to claim the $2,000 credit, but you can claim the $500 credit for that child using an ITIN or an ATIN.

For tax year 2023, the Child Tax Credit benefits are as follows: Credit changed from up to $3,600 per dependent child under COVID relief in tax year 2021 to its pre-COVID amount up to $2,000 for each dependent child. Each dependent child must be under age 17 at the end of the year.

The Child Tax Credit

The new child tax credit results in up to a $2,000 credit per qualifying child age 16 or younger. If you owe no tax, up to $1,600 of the child tax credit may be refundable using the Additional Child Tax Credit for 2023. Children over age 16 aren't eligible for the child tax credit.

TurboTax has you covered. We are up to date with the latest tax laws so you can file your taxes with confidence and accurately claim the Child Tax Credit, if you are eligible. There is no need to delay.