Child Tax Credit - Impact on Unemployment and Welfare Benefits

For 2023 updates: • Child Tax Credit 2024 ...
Is the Child Tax Credit (CTC) or Earned Income Tax Credit (EITC) impacted by unemployment or welfare benefits?
In this video, I address some of the common concerns families have regarding the interaction of the CTC and other federal and state programs.
Unemployment compensation is generally included in gross income and subject to taxes, but it doesn't necessarily impact your ability to claim CTC or EITC. Unemployment compensation is NOT earned income, so it cannot be used for the earned income computation on Form 8812 or with the EITC tables.
When calculating your income & assets for purposes of applying for SNAP benefits, the EITC and CTC amounts are excluded.
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.
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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Im very sorry to bother you but I have a question about form 1127 (extension). Whats the address / location where this form is going? Thx