I have a question regarding unemployment tax credit and unemployment tax benefit issues. If my only income was unemployment benefits, can I claim the child tax credit?
Yes, if you received taxable unemployment benefits, you can claim the child tax credit, but there is no unemployment tax credit. The child tax credit reduces taxes you owe, so you must have some taxable income to claim the credit.
To qualify for the additional child tax credit, you must have earned income. If unemployment was your only income, you aren’t eligible to claim the additional child tax credit.
However, you must also have had earned income in the year to claim either of these:
- Earned Income Credit (EIC)
- Child and dependent care credit
Head of household is a filing status for single or unmarried taxpayers who have maintained a home for a qualifying person, such as a child or relative. This filing status provides a larger standard deduction and more generous tax rates for calculating federal income tax than the Single filing status.
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