Avoid common CTC, ACTC and ODC errors

More In What You Need to Know about CTC and ACTC

The tips below will help avoid common CTC, ACTC and ODC errors. Use caution to ensure you do not:

Claim CTC or ACTC for a child who does not meet the age requirement

The child must be under 17 at the end of the tax year.

Claim CTC or ACTC for a child who doesn't have the required SSN

The SSN must be valid for employment and issued before the due date of the tax return (including extensions). The only exception is for a dependent child who was born and died before the end of the year.

Claim ODC for an individual who does not have the required taxpayer identification number

The dependent must have an SSN, ITIN, or ATIN issued on or before the due date of the tax return (including extensions). If the individual applies for an ITIN or ATIN for the dependent on or before the due date of the tax return (including extensions) and the IRS issues the ITIN or ATIN as a result of the application, the IRS will consider the ITIN or ATIN as issued on or before the due date of the tax return.

Claim CTC, ACTC or ODC for an individual who does not meet the dependency requirements

The individual must meet all the eligibility rules for a dependent (unless the special rule for divorced or separated parents applies) and be claimed as a dependent on your client’s return. Consider tie-breaker rules if a dependent is the qualifying child of more than one taxpayer.

  • A qualifying child for CTC/ACTC must:
    • Be under 17 at the end of the tax year.
    • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).
    • Not provide more than half of his or her own support for the tax year.
    • Have lived with you for more than half the tax year.
    • Be claimed as a dependent on your return.
    • Not file a joint return for the year (or filed the joint return only to claim a refund of taxes withheld or estimated taxes).
    • Be a U.S. citizen, U.S. national or a U.S. resident alien.
    • Have a Social Security number that is valid for employment and is issued before the due date of your tax return (including extensions).
       
  • A qualifying dependent for ODC must:
    • Be a dependent claimed on your return.
    • Be a dependent who can't be claimed for the CTC/ACTC.
    • Be a U.S. citizen, U.S. national, or U.S. resident alien.
    • Have an SSN, ITIN, or ATIN that was issued before the due date of the return (including extensions).

Consider tie-breaker rules if a dependent is the qualifying child of more than one taxpayer.

Use the Interactive Tax Assistant to see if you’re eligible to claim the CTC, ACTC or ODC.

Resources

Child Tax Credit

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