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March 25, 2025
Question

Full Child Tax Credit

  • March 25, 2025
  • 1 reply
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It says that I cannot claim the entirety of my child tax credit ' "The Child Tax Credit is normally $2,000 per child. But since your tax liability is $0, you can't use the full $8,000 credit." However, I still have federal taxes that I owe. If I still have taxes that I owe, why can't I use the full $8,000 credit?

1 reply

KrisD15
March 25, 2025

The tax liability that the credit is allocated to does not include ADDITIONAL taxes like Self-Employment tax or penalty tax on early IRA deductions, 

HOWEVER any remaining credit is allocated as the "Additional Child Tax Credit" and reported on your 1040 Line 28 (after the additional tax) 

 

Here is how to preview your 1040 to see how that/those credit(s) was/were applied.

Look at Form 1040 line 19 for the Child Tax Credit 

Look at Form 1040 Line 28 for the Additional Child Tax Credit (the amount of the Child Tax Credit that was not used) 

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