Why didn’t we get the child tax credit?

amother

Sun, Mar 03 2024, 12:31 am

Just filed our taxes and when I saw the refund we would be getting I knew something was wrong. By child tax credit the amount we got is $324. Every year until now we got $2k per kid. Not much has changed in our financial situation since last year. I’m hoping this is a mistake. I emailed the accountant but no answer yet. Anyone know what this could be?

amother

Wandflower

Sun, Mar 03 2024, 5:26 am

Doesn't it depend on how much taxes were withheld? Could it be that's changed? Any new or different jobs this year?

amother

Sun, Mar 03 2024, 8:20 am

amother Wandflower wrote:

Doesn't it depend on how much taxes were withheld? Could it be that's changed? Any new or different jobs this year?

I have no idea. I always thought everyone gets 2k per kid as long as they make under 400k. You mean maybe not enough taxes were withheld?
DH got a new job in Sept but making the same as he always did

amother

Wandflower

Sun, Mar 03 2024, 10:55 am

amother OP wrote:

I have no idea. I always thought everyone gets 2k per kid as long as they make under 400k. You mean maybe not enough taxes were withheld?
DH got a new job in Sept but making the same as he always did

I really have no idea. I'm self-employed in Israel and don't get anywhere near that and I figured it's because I don't have much taxes prepaid or owed. I thought it's subtracted off from what you owe, like if you owe $12,000 but have 5 kids then you only pay $2,000. But I don't see why that would change for you with a different job, so sorry I really am not being helpful.

amother

Stonewash

Sun, Mar 03 2024, 11:02 am

Does dh have a different comp structure at the new job? Same overall amount but set up differently?

amother

Midnight

Sun, Mar 03 2024, 11:18 am

Did any child turn 18?

Also the credit is non-refundable, so perhaps it lowered taxes you would have owed otherwise but you dont get it back as a refund

amother

Wandflower

Sun, Mar 03 2024, 11:26 am

amother Midnight wrote:

Did any child turn 18?

Also the credit is non-refundable, so perhaps it lowered taxes you would have owed otherwise but you dont get it back as a refund

Right, the question is why she then theoretically owed so much more taxes this year than other years. Would it make sense then that other years taxes were withheld so you got most of it back and this year taxes were not withheld so you owe them but didn't owe them because of the credit?

amother

Mint

Sun, Mar 03 2024, 12:48 pm

Have any of your children aged out this year?
Also isn't the Child Tax Credit a credit towards the taxes that you owe and not a refund?

amother

Zinnia

Sun, Mar 03 2024, 1:20 pm

The child tax credit is mostly a refundable credit ($1600 out of $2000), which means that you’ll get $1600 even if you don’t pay any tax. And the extra $400 only offsets taxes you owe. Once a child turns 17, you’re no longer eligible. Also could be that you would have owed money to IRS and the credit offset what you owed.

amother

Mocha

Sun, Mar 03 2024, 1:28 pm

Ummm, we make much much less than 400k and have never in the 8 years we've been filing since kids have gotten anywhere close to 2k per child.
What are we doing wrong?

Success10

Sun, Mar 03 2024, 1:48 pm

amother Mocha wrote:

Ummm, we make much much less than 400k and have never in the 8 years we've been filing since kids have gotten anywhere close to 2k per child.
What are we doing wrong?

Are you in the US? It's not available to citizens living abroad. Mad

amother

Mocha

Sun, Mar 03 2024, 1:51 pm

Success10 wrote:

Are you in the US? It's not available to citizens living abroad. Mad

Yup filing and paying lotsa taxes hardly getting any refund

amother

Ivory

Sun, Mar 03 2024, 2:42 pm

amother Mocha wrote:

Yup filing and paying lotsa taxes hardly getting any refund

If you owe taxes, it's probably then reducing your tax bill so you aren't noticing it.

amother

Wandflower

Sun, Mar 03 2024, 2:57 pm

Success10 wrote:

Are you in the US? It's not available to citizens living abroad. Mad

For real?? Then what are those people who advertise getting people the child tax credits in Israel doing to trick the system??

And also, I file taxes with an accountant in Israel and he definitely includes the child tax credit for my kids- I just don't get very much for it. Are you saying the $1600/$2000 being a freebie is what doesn't apply abroad?

Success10

Sun, Mar 03 2024, 3:14 pm

amother Wandflower wrote:

2 different things. You do get child tax credits, just the massive refund for each kid thing they give you after filing is only for those living in the US.

amother

Birch

Sun, Mar 03 2024, 3:19 pm

Thought the child credit was for day care so if you went onto vouchers or not paying daycare this year then you won’t be getting that money back.

amother

Wandflower

Sun, Mar 03 2024, 3:22 pm

Success10 wrote:

2 different things. You do get child tax credits, just the massive refund for each kid thing they give you after filing is only for those living in the US.

But aren't there advertisements all the time of accountants who claim they can get you that $2000 per kid in Israel?

Success10

Sun, Mar 03 2024, 3:26 pm

amother Wandflower wrote:

But aren't there advertisements all the time of accountants who claim they can get you that $2000 per kid in Israel?

I've seen ads that say up to $1,600 and it's a tax credit, against taxes that you owe. If you don't need it against taxes you owe, then you don't get to keep the change. Depends how much money you made.

Whereas this credit thing in America, if I understand correctly, it was passed under Biden and you get the actual leftover money into your account as a refund once all your taxes have been paid off. Obviously depends on income bracket and how many kids. I'm not a tax expert by any means but that's what I understood.