Question

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?

Answer

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:

Related Topics

Related Resources

The Child and Dependent Care Credit

How is the child and dependent care credit calculated with your employer's dependent care benefit plan? Find the answer and learn more at H&R Block.

Grad Student Tax Deductions and Credits

Learn more tax deductions available to grad students with advice from the tax experts at H&R Block.

Alternative Minimum Tax Deductions

Can HSA tax deductions help when it comes to the alternative minimum tax? Find out today. Get tax answers at H&R Block.

File Now – Don’t Risk Losing an Advance Premium Tax Credit

Even if you aren't required to file a tax return, one important reason to file is to stay eligible for the Advance Premium Tax Credit. Learn more at H&R Block.