How to Qualify for a Child Tax Credit If I Didn't Pay Taxes
If you didn't pay any taxes this year, you may believe you don't qualify for the Child Tax Credit. That's because this credit is what the Internal Revenue Service calls a nonrefundable credit. Essentially, that means you can take the credit only if you have a tax liability. However, there are two parts to the Child Tax Credit. The second is the Additional Child Tax Credit, and it is a refundable credit, meaning you don't have t have a tax liability in order to claim it. The Additional Child Tax Credit is designed to help those with low income or those with more than three qualifying children (the maximum you can claim for the regular Child Tax Credit).
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Instructions
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Review the guidelines for qualifying children. A child must be qualified for the Child Tax Credit to be eligible for the Additional Child Tax Credit. A child must be less than 17 years old as of December 31 of that tax year and must live with you more than half of the year. Qualifying children may be your biological children or yours by marriage or adoption. Grandchildren, foster children and siblings may also qualify. Children must also be United States citizens or resident aliens.
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Download IRS Form 8812 (Additional Child Tax Credit) from the IRS website together with the instructions and accompanying worksheets. (See Resources.) Use this material to calculate the Additional Child Tax Credit you can claim.
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Enter your Additional Child Tax Credit on your tax return. For Form 1040, the information goes on line 65. If you are using Form 1040A, the credit amount goes on line 42. Attach your completed Form 8812 to your tax return.
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Tips & Warnings
You may have some tax liability, but not enough to claim the full Child Tax Credit. You can use the Additional Child Tax Credit to make up the difference.
