• On the front of Form 1040, in the Dependents section, to the far right of each dependent’s name, are checkboxes for these two credits, showing who has qualified. 
  • On the Summary/Print page (Tax Return Summary page), if someone is shown as getting one of these credits but does not qualify:
    • In TaxSlayer’s Basic Information section, go to the page for that person; check the box labeled “Check if this qualifying child is NOT YOUR DEPENDENT”. This removes the person from the Dependents section, and prevents the taxpayer from getting the Child Tax Credit or Credit for Other Dependents for that person. 

Child Tax Credit

  • This credit is for qualifying children under age 17 as of the end of the tax year. (Note: for tax year 2022 on, the CTC reverted to the form – and amounts – in effect for tax year 2020.)
    • It is in addition to the credit for child and dependent care expenses, and the earned income credit.
    • A qualifying child must have a Social Security number as of the filing date, or as the original filing deadline for the tax year, whichever is earlier.
    • A custodial parent can allow the noncustodial parent to claim a dependent for purposes of the child tax credit, education credits, and medical expense deduction.
      • This requires a written declaration – Form 8332 or similar documentation.
  • If the taxpayer is eligible for CTC, then TaxSlayer automatically calculates the amount based on filing status and information entered for dependents.
    • The taxpayer and/or spouse do not need SSNs, but dependents do. 
      • Warning: a return cannot be amended to retroactively claim CTC after a dependent gets a SSN. If the taxpayer expects to get that SSN by October 15, they should file an extension rather than file a tax return, in order to preserve the right to CTC for that dependent. 
  • The child tax credit is both a nonrefundable and a refundable credit.
    • The CTC amount that goes on Line 19 is calculated as Line 16, Tax; minus other refundable credits, if any; minus the credits for other dependents, if any. If the calculated amount for CTC, on Line 19, hasn’t fully used the amount of the child tax credit, then the some or all of the remaining amount, up to $1,700 per child in 2024, can go to Line 28 - Additional Child Tax Credit (page 102) as a refundable credit, if the taxpayer has more than $2,500 of taxable earned income.
  • If CTC (or the companion credit, ACTC) is received on the current tax return, and the qualifying child is 15 or 16 years old at the end of the tax year, remind the taxpayer that the credit ends when the child becomes 17 (thereafter, it is a Credit for Other Dependents).
  • If needed, more information is on Pub 4012 pages G-4 to G-6 and in Pub 972, Child Tax Credit.

Credit for Other Dependents

  • This credit cannot be claimed if any of the following are true:
    • The dependent had gross income of $5,050 or more in 2024.
    • The dependent provided more than half of his or her own support.
    • The dependent is not a U.S. citizen or U.S. national, and did not live in the United States during the entire year, except for temporary absences.
  • Detailed information on this credit is on Pub 4012 page G-7.

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