Child Tax Credit 2023 - Can You Claim CTC with No Income?

For a 2024 update: • Child Tax Credit 2024 ...
Can you claim the child tax credit with no income?
In this video, I address some of the most common questions taxpayers have each year when filing their taxes:
1. Can I claim the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) if I have no earned income?
2. How do I calculate my earned income tax credit?
3. How do I calculate my additional child tax credit?
I cover three separate scenarios where a single parent with one qualifying child calculates their CTC and EITC amounts.
The EIC is available to taxpayers with or without children, who have earned income during the 2022 tax year. Earned income includes W-2 wages as an employee, as well as self-employed income reported on Schedule C.
We also examine the IRS Publication 596 which includes more information on the EIC and the relevant EIC tables. If you look closely at the EIC tables, you'll quickly realize that in order to claim any amount of EIC, the taxpayer will need to have at least $1 of earned income. If you have no earned income - you do not qualify for the EIC.
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit (CTC). The CTC is generally a nonrefundable tax credit which is a dollar-for-dollar reduction in the taxes owed. If, however, the total tax is reduced to zero, and the entire amount of the CTC has not been utilized, there may be a refundable portion under the ACTC.
In order to claim the ACTC, the taxpayer must have greater than $2,500 of earned income to realize any benefit. The ACTC must be completed on Form 8812 in Part II-A and is limited to $1,500 per child.
Child tax credit amounts for the 2022 tax year changed from 2021. Under the American Rescue Plan of 2021, the CTC was increased to $3,000 or $3,600 per child, depending upon the child's age.
The increased amounts expired, meaning the credit amounts reverted back to the 2020 year amounts. The child tax credit is now $2,000 per child under the age of 17, with income phaseouts starting at $200,000 for single filers and $400,000 for married filing joint taxpayers.
The CTC is claimed on IRS Form 8812 and attached to the taxpayer's Form 1040.
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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#ChildTaxCredit #EIC #Form1040 #Form8812

[@JasonDKnott]

For extra videos on Child Tax Credits: kzbin.info/aero/PLTdpzKOWNutQ9p557YvABqo9LVv-4op4U

[@danrag29]

Thats Bullshit! Your still spending money on kids every day, the credit is for the Kids as well as the parents.! theres a CTC and an additional CTC, You should get the CTC regardless

[@SantanaSam12]

Exactly, our kids go to school, eat the food we buy.. go to their business they run and fund … it’s complete bs .

[@lawrenceward2366]

thanks Jason. Clear and concise.

[@JasonDKnott]

Glad it was helpful!

[@rickcarp5453]

it should go back to the old way for non filers

[@user-do3og9or8u]

Hi Jason, thank you for the excellent explanation. where can I find the table that you are using, 2022 earned income credit (EIC) table cation this is not a tax table ?

[@ConnieDominguez-sj7xz]

Hi Jason, thank you for an excellent explanation of the different scenarios. What if you have MFJ with 2 children under 5, Taxpayer is Self Employed with a loss and spouse has W-2 earnings that are lower then the loss. AGI is a loss. Can the tax payer still claim the EIC, and the CTC? Pro Series is not allowing either due to the overall loss. I'm struggling because in my mind, the earned income would make them eligible if it were not for the Self Employment loss. Any help is greatly appreciated.

[@user-do3og9or8u]

Hi Jason. Thank you for the excellent explanation. where can I find the table, 2022 earned income credit (EIC) table cation this is not a tax table ? thank you

[@dwaynelasater2350]

Hi Jason, I have a question for you similar to this video. Our disabled minor grandson lives with us. His grandma earns wages thru In-Home Support Services to take care of him. She earned 16k of which none of the wages is taxable. How do we report the wages so that it is not taxed and still get the EIC and CTC ? This refers to tax notice 2014-7. P.S. there are no wages reported in box 1 or 16 of her w-2 because we have a live-in certification form filed with IHSS. Thank You Kindly,

[@RichardCossia]

How does it work if your self employed for the year, however for half of the year you put yourself on payroll and pay yourself a weekly check and then pay taxes as an employee?

[@karenarias2711]

Hey can you help me out. For 2023 what is the correct formula and percentages? Im working on a problem: Mom and dad are married. Theee kids one is 2 other is 3 and the other one is 5. The mom paid $38,561 in child care for all of 2023. The kids were in daycare all year. And lives with the parents all year. What should be my first calculation? Mom income: 80685 Dad income:114598 Let me know if you need more info.

[@janetgoldsmith22]

Why can't you claim the child tax credit if you are both retired and raising a grandchild

[@alliecee1021]

Because you have no earned income

[@southerndipper6159]

I'd like to know myself !!

[@alliecee1021]

You can only claim it if you have earned income. Social security, pension, or ira distributions don’t count.

[@dr.death4377]

is SSI and SSDI earn income yes or no.

[@lashayparker5602]

No!

[@sstmoadwn]

All these adds? Seriously??? Smmfh.