Child Tax Credit

[Rapid Robert]

"She did not qualify for the CTC"

I'm pretty sure she did qualify for non-refundable CTC. However, as noted above, the refundable portion (for one or two children) is limited to 15% of earned income in excess of $2,500, which with your facts is zero.

[Forensicacctnt]

She has military disability income.

[New York Enrolled Agent]

The Schedule C profit was $194. Thank you for your help.

She has only self-employment income.

I need to ask - you say her only income was $194. How does she survive?

[Forensicacctnt]

The Schedule C profit was $194. Thank you for your help.

[TaxGuyBill]

What was her Schedule C profit? She needs at least $2500 of earned income for the Additional Child Tax Credit.

[Forensicacctnt]

Client is a single parent with one dependent under the age of 17. All requirements are met for claiming him as a dependent. She has only self-employment income. I completed the information for the form 8867. The client qualified for the Earned Income Credit. She did not qualify for the CTC or ACTC. Is this because you have to have other earned income? Thank you.