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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 W2 wages as an employee, as well as selfemployed 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 dollarfordollar 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 IIA 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. Selfhelp services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorneyclient or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

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