I have entered a dependent on screen 2 that qualifies for the Child Tax Credit, but they did not live with the taxpayer for the entire year. Months in home is only 6. How can I indicate that this dependent is indeed eligible for the CTC?
Generally, for a child to be considered a qualifying child for CTC purposes, they must have lived in the home for more than half of the year. Starting in UltimateDR 16, CTC will be automatically disallowed for a child when fewer than 7 Months in home have been entered on screen 2 Dependents. There are some exceptions to this residency test, which may allow a child who lived in the home for less than 7 months to be a qualifying child for CTC purposes. See Publication 972 for the residency test exceptions.
If you determine that the child does qualify for CTC when they lived in the home for less than 7 months, then you will need to choose Yes in the drop down to indicate that the child does qualify:
Note: In UltimateDR 15 and prior, if the Child Tax Credit is calculated when the child is not eligible, mark the checkbox Not Eligible for Child Tax Credit on the bottom of each applicable dependent screen.
