2020 child tax credit phase out

[seanp2]

Am I eligible for the full $2,000 per child tax credit in 2020?

2020 AGI is 430K
2019 AGI is > 400K  (MFJ)

I know there is a special election available this year to use 2019 earned income to determine the credit.  If I use my 2019 AGI, I should not be subject to any phase out. 

This is clearly not the intent of the look-back provision.  I suspect the phased out credit is correct for me, but just wanted to double check with the community to see if anyone has any insight here.  I can't get my tax software to activate the "additional child tax credit" form which I think is where this would be entered.

[MDM]

I know there is a special election available this year to use 2019 earned income to determine the...

...earned income credit.

Doesn't apply to the child tax credit - sorry. :(

[secondcor521]

I know there is a special election available this year to use 2019 earned income to determine the...

...earned income credit.

Doesn't apply to the child tax credit - sorry. :(

The election to use PYEI does appear to apply both to the EITC and to the additional child tax credit (ACTC).  See irs.gov here for the latter in the instructions for Line 6a of Schedule 8812:

https://www.irs.gov/instructions/i1040s8#idm139672221277632

OP, was your 2019 income below $400K?  If so, you could apparently elect to use PYEI for the ACTC.  It might be an election at the beginning of your tax software, or you might try to find a place to enter your 2019 earned income, or it might be on Schedule 8812.  (Or you might be using crummy tax software.)

The intent of the provision appears to be to provide tax relief for people who receive those credits in a time of uncertain and changing income.  I'd recommend doing your taxes both ways and taking the more advantageous result.

[MDM]

I know there is a special election available this year to use 2019 earned income to determine the...

...earned income credit.

Doesn't apply to the child tax credit - sorry. :(

The election to use PYEI does appear to apply both to the EITC and to the additional child tax credit (ACTC).  See irs.gov here for the latter in the instructions for Line 6a of Schedule 8812:

https://www.irs.gov/instructions/i1040s8#idm139672221277632

OP, was your 2019 income below $400K?  If so, you could apparently elect to use PYEI for the ACTC.  It might be an election at the beginning of your tax software, or you might try to find a place to enter your 2019 earned income, or it might be on Schedule 8812.  (Or you might be using crummy tax software.)

The intent of the provision appears to be to provide tax relief for people who receive those credits in a time of uncertain and changing income.  I'd recommend doing your taxes both ways and taking the more advantageous result.

Ah, thanks for the correction.  Although, the 2019 earned income has to be higher than the 2020 earned income.  That can help close to $0 AGI, but perhaps not ~$400K AGI.

[secondcor521]

Ah, thanks for the correction.  Although, the 2019 earned income has to be higher than the 2020 earned income.  That can help close to $0 AGI, but perhaps not ~$400K AGI.

Ah, thanks for the clarification. ;-)

That additional restriction seems to make it a dumb provision in the law, but maybe I'm missing something.  My youngest is 19, so I have become gleefully ignorant of all the CTC changes of late.

[MDM]

Ah, thanks for the correction.  Although, the 2019 earned income has to be higher than the 2020 earned income.  That can help close to $0 AGI, but perhaps not ~$400K AGI.

Ah, thanks for the clarification. ;-)

That additional restriction seems to make it a dumb provision in the law, but maybe I'm missing something.  My youngest is 19, so I have become gleefully ignorant of all the CTC changes of late.

There is a quirky section of the ACTC that can prevent one from getting it if earned income is too low.  That part of the law goes away for 2021 tax year - don't recall offhand if it returns in some future year....

[seanp2]

Thanks, all, for your the comments.  I'm going to conclude I can't take the benefit of my lower 2019 AGI to get the full credit.  I found this in the instructions to the Schedule 8812 (ACTC):

"You may be able to use your 2019 earned income  on  line  6a  to  figure  your  additional child tax credit. You can make this election if your 2019 earned income was greater than your 2020 earned income."