Child Tax Credit on Form 1040 (2019): A Comprehensive Guide
What the Form Is For
The Child Tax Credit (CTC) is a tax benefit designed to help families with qualifying children reduce their federal income tax burden. For the 2019 tax year, this credit was claimed directly on Form 1040, line 13a, as Form 1040A had been discontinued after 2017. The credit offers up to $2,000 per qualifying child under age 17, helping to offset the costs of raising children.
Additionally, families who don't owe enough tax to use the full credit may qualify for the Additional Child Tax Credit (ACTC), a refundable credit claimed using Schedule 8812. This means you could receive a refund even if you owe no federal income tax, provided you have earned income of at least $2,500. The ACTC can provide up to $1,400 per child as a refund.
Families with dependents who don't qualify for the CTC—such as children age 17 or older, or other relatives—may be eligible for the Credit for Other Dependents (ODC), worth up to $500 per dependent. All three credits work together to provide comprehensive tax relief for families supporting dependents.
When You’d Use It (Late or Amended Filing)
You can claim the Child Tax Credit when filing your original 2019 Form 1040 by the regular deadline (which was July 15, 2020, due to COVID-19 extensions). If you missed claiming the credit on your original return, you have up to three years from the original deadline to file an amended return using Form 1040-X to claim it.
However, there's an important caveat: if your Child Tax Credit was previously denied or reduced for reasons other than math or clerical errors after 2015, you must attach Form 8862 (Information to Claim Certain Credits After Disallowance) to claim the credit again. Certain exceptions apply, so review Form 8862's instructions carefully.
For families affected by federally declared disasters in 2018 or 2019, special provisions allowed using prior-year earned income to calculate the ACTC if it resulted in a larger credit. If you were eligible for this but didn't claim it originally, you'd need to file an amended return. To make this election, write "PYEI" (Prior Year Earned Income) and the amount next to Form 1040, line 18b.
Key Rules or Details for 2019
Seven Eligibility Tests for the Child Tax Credit
To claim the Child Tax Credit for 2019, your child must meet seven specific conditions.
1. Relationship Test
The child must be your son, daughter, stepchild, foster child, sibling, or descendant of any of these (such as a grandchild or niece).
2. Age Test
The child must have been under age 17 on December 31, 2019.
3. Support Test
The child cannot have provided more than half their own support during the year.
4. Residency Test
The child must have lived with you for more than half of 2019, with exceptions.
5. Dependent Status
You must claim the child as a dependent on your return.
6. Joint Return Test
The child cannot file a joint return unless only to claim a refund of withheld taxes.
7. Citizenship Test
The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
Social Security Number Requirements
Each qualifying child must have a valid Social Security Number (SSN). ITINs and ATINs do not qualify for the CTC.
Income Phase-Out Rules
The credit phases out beginning at:
- $200,000 modified AGI for most filers
- $400,000 for married filing jointly
Your credit is reduced by $50 for each $1,000 above the threshold.
Step-by-Step (High Level)
Step 1: Identify Qualifying Dependents
Review each dependent against the seven qualifying tests.
Step 2: Fill Out the Dependents Section on Form 1040
Check the correct credit box—CTC or ODC—depending on eligibility.
Step 3: Calculate Your Credit
Use the Child Tax Credit and Credit for Other Dependents Worksheet.
Step 4: Compare to Your Tax Liability
Enter the smaller of the credit or your tax liability on line 13a.
Step 5: Determine Eligibility for the Refinable ACTC
If limited by tax liability, complete Schedule 8812.
Step 6: Complete the Return and Attach Required Forms
Attach Schedule 8812 if claiming the ACTC.
Step 7: Submit and Await IRS Processing
Returns with ACTC claims are held until mid-February.
Common Mistakes and How to Avoid Them
Mistake 1: Missing or Invalid SSN
Only SSNs valid for employment qualify.
Mistake 2: Claiming a Child Who Is 17
Age rules are strict—under 17 on December 31, 2019.
Mistake 3: Misunderstanding Earned Income Requirements for ACTC
You must have at least $2,500 in earned income.
Mistake 4: Forgetting to Attach Schedule 8812
Required when claiming the ACTC.
Mistake 5: Failing the Citizenship or Residency Requirements
Children must be citizens/aliens who lived with you more than half the year.
What Happens After You File
IRS Processing
The IRS verifies that names and SSNs match SSA records.
Refund Timing
- CTC-only refunds: typically within 21 days
- ACTC refunds: no earlier than mid-February under the PATH Act
Possible IRS Notices
The IRS may request documents such as:
- Birth certificates
- Medical or school records
- Proof of residency
Disallowance Consequences
If denied due to reckless disregard:
- 2-year ban on CTC/ODC/ACTC
If denied due to fraud: - 10-year ban
Amending a Return
Use Form 1040-X within three years of the original deadline.
FAQs
Can I claim the Child Tax Credit if my child doesn't have a Social Security Number yet?
No. For 2019, each qualifying child must have an SSN valid for employment and issued before the return due date.
What's the difference between the Child Tax Credit and the Additional Child Tax Credit?
CTC reduces tax liability; ACTC is refundable up to $1,400 per child.
My child turned 17 in December 2019. Can I still claim the credit?
No. The child must be under 17 on December 31, 2019.
Can both parents claim the Child Tax Credit for the same child if they're divorced?
No. Only one parent may claim it, typically the custodial parent unless Form 8332 is used.
Do I need to attach any documents to prove my child qualifies?
Not with the original return, but keep proof in case the IRS later requests it.
I received advance payments of the Child Tax Credit in 2019. How does that affect my return?
There were no advance Child Tax Credit payments in 2019.
What happens if I claimed the credit but shouldn't have?
You may face a two- or ten-year ban depending on the severity and may need to amend your return.
Sources:
Publication 972 (2019), Instructions for Schedule 8812 (2019), Form 1040 (2019)
