Child Tax Credit Not Calculating Refundable credit for a Qualified Child

[Halloween]

Please assist how to enable PTO to calculate the refundable child tax credit.  TP is filing 2018 MFS and a line 10 taxable income of $2,242 with a line 11 Tax of $24.  But no refundable Child tax credit? Thanks

[George4Tacks · Accepted solution]

Look at form 8812 and see if you can find an error. How old is the child?

[TaxGuyBill]

The refundable part of the credit is partially based on "earned" income?  Does the taxpayer have enough "earned" income to qualify for the credit?

[Halloween]

@George4Tacks and @TaxGuyBill Many thanks for your comments and suggestions.  It seems to me that the error is the inability to mark the director’s fee (it is more than $2,500 and child is below 17) as earned income as such income is entered in the other income section.  Do you know how to label such income as earned income in Schedule 1 line 21? Thanks again for your time!

[TaxGuyBill]

You need to determine if it is actually "earned" or not.  If it is, report it on Schedule C (and it would be subject to SE tax).

[Halloween]

Thanks.  Will report the fee on Schedule C and pay SE tax.  The SE tax will wipe out the refundable credit or the refundable credit will decrease the SE tax.

[George4Tacks]

@Halloween  You indicated you have entered "other income section." Did you not see the item right above that entry? "Income subject to self employment tax"
Schedule C is the preferred entry, but the one I just mentioned is quicker.

[Halloween]

Great suggestion.  But will go through the preferred entry Sch C at this time