Form 1040A Child Tax Credit (2014): A Complete Guide
What the Form Is For
The Child Tax Credit is a tax benefit designed to help families with qualifying children reduce their federal income tax burden. For tax year 2014, this credit allows you to claim up to $1,000 for each qualifying child under age 17. When filing Form 1040A, you calculate this credit using a worksheet provided in the Form 1040A instructions and report the amount on line 35 of your return. The credit directly reduces the amount of tax you owe, dollar for dollar. If the credit exceeds your tax liability, you may also qualify for the Additional Child Tax Credit, a refundable credit that could result in a refund even if you don't owe any tax. This additional credit is calculated using Schedule 8812 and reported on Form 1040A, line 43.
The Child Tax Credit is separate from and in addition to other family-related tax benefits, including the Child and Dependent Care Credit (for childcare expenses) and the Earned Income Credit. Understanding the distinction between these credits is important because each has different eligibility requirements and serves different purposes in supporting working families.
When You'd Use It
You claim the Child Tax Credit when you file your original 2014 tax return by the April 15, 2015 deadline. Most taxpayers complete their Form 1040A and claim the credit during the normal tax filing season between January and April following the tax year. However, you can also file for an automatic six-month extension using Form 4868 if you need additional time to prepare your return, though this extends the filing deadline to October 15, 2015, not the payment deadline.
If you discover after filing that you were eligible for the credit but didn't claim it, or if you made an error in calculating the credit amount, you can file an amended return using Form 1040X. The IRS generally allows you to claim a refund for up to three years from the date you filed your original return or two years from the date you paid the tax, whichever is later. This means for the 2014 tax year, you typically have until April 2018 to file an amended return claiming the Child Tax Credit you were entitled to but didn't originally claim.
Special timing rules apply for military personnel serving in combat zones or contingency operations, as they may receive automatic extensions beyond the standard deadlines. Additionally, if advance payments of the Premium Tax Credit were made for health insurance purchased through the Health Insurance Marketplace, you must file a 2014 return even if you wouldn't otherwise be required to do so.
Key Rules or Details for 2014
Requirements for a Qualifying Child
To qualify for the Child Tax Credit, a child must meet seven specific requirements. First, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-sibling, or a descendant of any of these (such as a grandchild, niece, or nephew). Second, the child must have been under age 17 at the end of 2014—meaning born on January 1, 1998 or later. Third, the child must not have provided more than half of their own support during the year. Fourth, the child must have lived with you for more than half of 2014, though temporary absences for school, vacation, medical care, or military service count as time living with you. Special exceptions also apply for children born or who died during the year, and for children of divorced or separated parents.
Fifth, you must claim the child as a dependent on line 6c of Form 1040A, and you must check the box in column 4 to indicate the child qualifies for the credit. Sixth, the child cannot file a joint return for the year unless filing solely to claim a refund of withheld taxes. Seventh, and critically important, the child must be a U.S. citizen, U.S. national, or U.S. resident alien. Children who are not U.S. citizens must meet the substantial presence test to be considered resident aliens—generally being physically present in the United States for at least 31 days during 2014 and 183 days during the three-year period of 2012-2014.
Credit Amounts and Phase-Out Rules
The maximum credit is $1,000 per qualifying child, but this amount phases out at higher income levels. The credit begins to reduce when your modified adjusted gross income (AGI) exceeds $110,000 for married couples filing jointly, $75,000 for single filers, heads of household, or qualifying widows/widowers, or $55,000 for married individuals filing separately. For each $1,000 (or portion thereof) your modified AGI exceeds the threshold, your credit decreases by $50. Modified AGI for most taxpayers equals their AGI shown on Form 1040A, line 22, unless they're excluding income from Puerto Rico or claiming certain foreign income exclusions.
You must provide a valid Social Security Number (SSN) or Adoption Taxpayer Identification Number (ATIN) for each qualifying child. Children identified only with Individual Taxpayer Identification Numbers (ITINs) require special documentation on Schedule 8812, Part I, to prove they meet the substantial presence test as U.S. residents.
Step-by-Step (High Level)
Step 1: Confirm Qualifying Children
Begin by determining which of your dependents qualify for the Child Tax Credit using the seven requirements outlined above. For each qualifying child, ensure you've correctly entered their name, Social Security Number, relationship to you, and checked the box in column 4 of line 6c on Form 1040A. Verify that the name and SSN match the child's Social Security card exactly, as discrepancies will cause the IRS to reject or delay your credit.
Step 2: Complete the Child Tax Credit Worksheet
Next, complete your Form 1040A through line 30 (your total tax before credits). Then locate the Child Tax Credit Worksheet in the Form 1040A instructions. This worksheet walks you through calculating your credit amount. Start by multiplying the number of qualifying children by $1,000. Compare your modified AGI to the income phase-out threshold for your filing status. If your income exceeds the threshold, you'll calculate a reduction to your credit by determining how much your income exceeds the limit, rounding up to the next $1,000 increment, and multiplying by five percent.
The worksheet then compares your calculated credit amount to your actual tax liability. You can only claim the non-refundable portion of the Child Tax Credit up to the amount of tax you owe. Enter the smaller of these two amounts on Form 1040A, line 35—this is your Child Tax Credit.
Step 3: Determine Eligibility for the Additional Child Tax Credit
If your credit was limited because your tax liability was too low, don't stop there. You may qualify for the Additional Child Tax Credit, which is refundable. Complete the rest of Form 1040A through lines 42a and 42b (your Earned Income Credit and other refundable credits). Then fill out Schedule 8812, Parts II through IV, which calculates your Additional Child Tax Credit based on your earned income and the number of qualifying children. The Additional Child Tax Credit can give you a refund even if you don't owe any tax. Report this amount on Form 1040A, line 43, and include it in your total payments and credits.
Step 4: Finalize and File Your Return
Finally, attach Schedule 8812 to your Form 1040A if you completed any part of it, sign and date your return, and file it with the IRS by the appropriate deadline. If filing electronically through IRS e-file or Free File, the software will perform these calculations for you and automatically attach any necessary schedules.
Common Mistakes and How to Avoid Them
Mistake 1: Incorrect or Mismatched Social Security Numbers
One of the most frequent errors is providing incorrect or mismatched Social Security Numbers for qualifying children. Always verify that each child's name and SSN on your tax return exactly match their Social Security card. Even small variations in spelling or transposed numbers will cause the IRS to disallow the credit. If your child's name has legally changed due to marriage, divorce, or adoption, contact the Social Security Administration to obtain a corrected card before filing.
Mistake 2: Forgetting to Check the Qualification Box
Many taxpayers forget to check the box in column 4 of line 6c for qualifying children. This small box signals to the IRS that you're claiming the Child Tax Credit for that specific child. Without checking this box, the IRS may not process your credit claim, even if the child is otherwise eligible. Similarly, ensure you're only checking the box for children who meet all seven qualifying requirements, particularly the age requirement—children who turned 17 during 2014 do not qualify.
Mistake 3: Errors in Phase-Out Calculations
A common calculation error occurs when determining the phase-out reduction. Taxpayers sometimes use their total income instead of modified AGI, or they fail to round up to the next $1,000 when calculating how much their income exceeds the threshold. For example, if your modified AGI exceeds the threshold by $1,500, you must treat this as $2,000 when calculating the reduction. Use the worksheet line-by-line rather than attempting shortcuts.
Mistake 4: Overlooking the Additional Child Tax Credit
Many eligible families miss out on the Additional Child Tax Credit because they don't realize they qualify or they stop after calculating the non-refundable portion. If your credit was limited by your tax liability, always complete Schedule 8812 to see if you're entitled to a refund through the additional credit. This is particularly important for lower-income working families who may have three or more children or significant earned income.
Mistake 5: Confusing Different Family Credits
Don't confuse the Child Tax Credit with the Child and Dependent Care Credit. These are separate credits with different purposes—the Child Tax Credit is based simply on having qualifying children under 17, while the Child and Dependent Care Credit requires that you paid for childcare to enable you to work. You may be eligible for both, but they're calculated and claimed separately on different lines of Form 1040A.
What Happens After You File
Once you file your Form 1040A claiming the Child Tax Credit, the IRS processes your return and verifies the information you provided. The IRS uses automated systems to cross-check the Social Security Numbers you entered against Social Security Administration records to confirm each child's name, SSN, and age. If there's a mismatch, you'll receive a notice explaining that the credit was adjusted or denied, and you'll need to provide documentation proving the child's identity and your relationship.
If your return is accepted as filed, you'll receive your refund (including any Additional Child Tax Credit) within three weeks if you filed electronically with direct deposit, or up to eight weeks if you filed a paper return requesting a paper check. You can track your refund status using the IRS "Where's My Refund?" tool on IRS.gov or by calling the automated refund hotline.
The IRS conducts compliance checks on Child Tax Credit claims, especially for first-time claimants or when patterns suggest potential errors. You might receive a CP09 or similar notice asking you to verify that your children qualify for the credit. If this happens, respond promptly with documentation such as birth certificates, school records, medical records, or other proof that each child lived with you for more than half the year and meets all eligibility requirements.
Keep copies of your filed tax return, all Forms W-2 and 1099, and Schedule 8812 for at least three years. Also maintain supporting documents proving your children's ages, citizenship or resident alien status, and residency with you. These records are essential if the IRS questions your credit claim or if you need to amend your return later.
If the IRS adjusts or denies your credit and you disagree with their determination, you have the right to appeal. The notice you receive will explain the appeals process and deadline for responding. You can also contact the Taxpayer Advocate Service, an independent organization within the IRS, if you're experiencing hardship due to a tax problem or if the IRS hasn't responded to your inquiries.
FAQs
My child turned 17 in December 2014. Can I still claim the Child Tax Credit for them?
Unfortunately, no. The child must be under age 17 at the end of the tax year, which means December 31, 2014. If your child turned 17 at any point during 2014, they don't meet the age requirement for that year's credit. However, you can still claim them as a dependent on line 6c for the exemption deduction, which reduces your taxable income. Children who turn 17 during the tax year represent one of the most common reasons families lose eligibility for the credit.
What if I share custody of my child with their other parent—can we both claim the Child Tax Credit?
No, only one parent can claim the Child Tax Credit for a child in any given tax year. Generally, the custodial parent (the one with whom the child lived for the greater number of nights during 2014) is entitled to claim the credit. However, the custodial parent can release this right to the noncustodial parent by completing Form 8332 or a similar written declaration. If both parents attempt to claim the same child, the IRS will investigate and award the credit to the eligible parent based on the tiebreaker rules, which typically favor the custodial parent or, if both have equal custody, the parent with the higher adjusted gross income.
I'm adopting a child. When can I start claiming the Child Tax Credit?
You can claim the Child Tax Credit for an adopted child as soon as the child is lawfully placed with you for legal adoption, even before the adoption is finalized. The child must have lived with you as a member of your household for more than half of 2014. If you are a U.S. citizen or national and the child lived with you all year, the child automatically meets the citizenship/residency requirement for the credit. Until you receive a Social Security Number for the child, you can use an Adoption Taxpayer Identification Number (ATIN) from the IRS to identify the child on your tax return.
What counts as "support" when determining if my child provided more than half their own support?
Support includes the fair market value of food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To determine if your child provided more than half their own support, calculate the total support received from all sources (including the child's own funds, your contributions, and support from others), then determine what portion came from the child's own earnings or savings. If your 16-year-old works part-time and earns $5,000 but uses only $2,000 for their own support while you provide $8,000, the child hasn't provided more than half their own support and still qualifies. However, if that same teenager uses $6,000 of their earnings for their support while you provide $5,000, they have provided more than half and wouldn't qualify.
My child is a full-time college student living in a dorm most of the year. Do they still meet the "lived with you" requirement?
Yes. Temporary absences for education count as time the child lived with you, as long as your home remains the child's principal residence and they return during breaks. The key is that the absence must be temporary with the intent to return. A college student who lives in a dorm during the school year but considers your home their permanent residence and returns during summer and holiday breaks meets the "lived with you for more than half the year" requirement. However, remember that the child must still be under age 17 at the end of the year—most college students are 17 or older and wouldn't qualify based on age.
I filed my return but forgot to claim the Child Tax Credit. Can I still get it?
Yes. You can file an amended return using Form 1040X to claim the Child Tax Credit you were entitled to but didn't originally claim. You generally have three years from the date you filed your original return to file an amended return claiming a refund. For your 2014 tax return, this typically means you have until April 2018. To amend, complete Form 1040X showing the changes to your return, attach a corrected Form 1040A with the Child Tax Credit properly claimed on line 35 (and Schedule 8812 if claiming the Additional Child Tax Credit), and mail it to the IRS address listed in the Form 1040X instructions. Include an explanation of the changes and any supporting documentation.
What's the difference between the Child Tax Credit and the Additional Child Tax Credit?
The Child Tax Credit (line 35 of Form 1040A) is a non-refundable credit that reduces your tax liability but can't reduce it below zero. If you owe $800 in taxes and qualify for a $1,000 Child Tax Credit, you can only use $800 of it. The Additional Child Tax Credit (line 43 of Form 1040A) is the refundable portion that allows you to receive the unused portion as a refund. Using the same example, the remaining $200 could be claimed as an Additional Child Tax Credit using Schedule 8812, giving you a $200 refund even though you owe no tax. Think of the Additional Child Tax Credit as a way to ensure working families with children receive the full benefit of the credit, even if their tax liability is low.
