Child tax credit and a fiscal year

[NECPA in NEBRASKA]

I have a fiscal year 1040 with a year end of 3/16., which is a calendar year 2015 1040.  ATX calculated and I agreed that a child born in November of 1999 was not 17 by the end to their fiscal year and gave them the $1,000 child tax credit. IRS has deducted it as not being qualified. All that I can find is that the child had to be under 17 in 2015 , which it was. Since this is a fiscal year return, it has to be paper-filed, so I am assuming that this is an error. I can't find any additional directions for fiscal year filers regarding this in the instructions, pub, Google or CCH Research. I don't want my client to miss the last year of their credit. Does anyone know if I'm correct? Thanks!

 

[jklcpa]

I'm not sure, I might have found the answer so read this and see what you think (and sorry the formatting is not so great):

The IRC for the CTC is sec 24 where it says:
(c) Qualifying childFor purposes of this section—

(1) In general

The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c) ) who has not attained age 17.

 

And then if you look at sec 152(c), it says "who meets the age requirements in paragraph 3", and then look at #3, specifically (3)(A)(i), it says:

(3) Age requirements

(A) In generalFor purposes of paragraph (1)(C), an individual meets the requirements of this paragraph if such individual is younger than the taxpayer claiming such individual as a qualifying child and—

(i) has not attained the age of 19 as of the close of the calendar year in which the taxable year of the taxpayer begins, or

(ii) is a student who has not attained the age of 24 as of the close of such calendar year.

 

Links to both pages:

https://www.law.cornell.edu/uscode/text/26/24

 

https://www.law.cornell.edu/uscode/text/26/152

[NECPA in NEBRASKA]

Thanks, Judy! I kept looking for something specific to the CTC. So their calendar year began in 2015 and the child did not turn 17 until 2016. ATX and I were correct. I am going to try to handle this with a phone call. This fiscal return causes all kinds of havoc with the IRS and state. (I didn't set them up as fiscal)