01-30-2014 04:01 PM
My husband and I just had our first child on September 24, 2013. When doing our taxes online at H&R Block, it is saying that we do not qualify for a child tax credit. My husband is not working right now so he has been home with her so we do not pay for child care. Would that matter for the tax credit? Does anyone know anything about this? Thanks!
01-30-2014 07:05 PM
Hi, peeka, welcome to the Community and congratulations on the baby.
With your husband at home, you would not qualify for the Child and Dependent Care credit, but you would still qualify for the Child Tax Credit, if your income is enough. Assuming the baby lived with you since birth (ignoring any hospital stay), make sure you indicate that the child was with you for the entire year.
02-01-2014 10:49 PM - edited 02-01-2014 11:04 PM
I am divorced and filing as single. Court documents say I can claim one daughter and my ex-wife can claim our second daughter. It is saying I'm not eligible for claiming her because my income is greater than a specified amount?
02-02-2014 07:40 PM
There's no such thing as not being able to claim your daughter as a dependent, but various benefits from claiming her are phased out at various income levels. The exemptions start being phased out at an adjusted gross income of $254,200 for a single person. However, the child tax credit starts phasing out at only $75,000, while the earned income credit for a single parent with just one child ends at 37,870. Also keep in mind that only the custodial parent (defined as the parent with whom the child spends the most nights) can claim the daycare credit or earned income credit, even if the other parent claims the exemption.
02-05-2014 12:19 AM
02-06-2014 09:15 AM
Be careful here...
You say "There's no such thing as not being able to claim your daughter as a dependent."
Actually in certain situations you are not able to claim your daughter as a dependent.
In addition to all the dependent tests in IRS Publication 17, Chapter 3, the custodial parent may, under a separation agreement or parenting plan, allow the non-custodial parent to claim the child as their dependent by providing non-custodial parent an IRS Form 8332. This form waives waives the custodial parent's rights to claim a child as a dependent for one or more years.
The non-custodial parent can file this form with their taxes and claim the child as a dependent and claim the dependent exemption and the child tax credit.
The custodial parent cannot claim the child as a dependent, claim the dependent exemption, or the child tax credit for that child but they can still use the child as a qualfying child to file as "Head of Household" and claim the child care tax credit and earned income tax credit assuming they meet the other tests for those credits.