Can I waive IRS penalty for missing Child Tax Credit for 17 year old?

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  • #91887 Reply

      I didn’t realize that children stop qualifying for child tax credit the year they turn 17 until the beginning of this year. My son turned 17 mid year 2023. Now I am looking at a small penalty fee for not having enough taxes withheld for the first time ever.

      I seem to remember hearing about people asking for IRS to waive the penalty. Is that a thing? How would I go about doing that? Also has anyone found a good calculator for estimating tax liability? I need to adjust my withholdings for this year so next year I don’t end up in the same predicament.

      Also why aren’t 17 year olds considered children when they aren’t legal adults?

      #91888 Reply

        I didn’t realize this! My daughter turns 17 this year. Bummer. Thanks for the warning.

        #91889 Reply

          Wasn’t this changed in the 2017 reform package? I recall collecting through age 17 and stopping the tax year they turned 18. Last one turned 18 in 2017.

          #91890 Reply

            We went through the exact same thing a couple of years ago, and I was equally shocked and dismayed. The penalty just adds salt to the wound.

            #91891 Reply

              According to my accountant you now receive $500.00 instead of the $2,000.00. My teen also turned 17 this year. It’s ridiculous.

              #91892 Reply

                You claimed your child the year he/she was born. If they were born in November, you receive the benefit of the child being in your care for one whole year.

                So you do get 18 years of credit and I think most people forget about the first year.

                Consider browsing: How does the IRS “know” that SEP IRAs are being funded by employer contributions?

                #91893 Reply

                  Outside of wondering why the IRS does anything they do (like retirement account access increases at 59.5 and catchup contributions start at year you turn 50 except hsa), I had it in my head with no proof that you can join the military at age 17 so you are eligible to move depending on your parents to depending on Uncle Sam.

                  #91894 Reply

                    File form 2210 with your return to waive the penalty.

                    #91895 Reply

                      I agree it is a pretty arbitrary age to stop the credit. My daughter turned 17 last year as well.

                      #91896 Reply

                        There’s a safe harbor rule that should eliminate the penalty your first year of underpaying. You can get the underpayment penalty removed if you pay at least 90% of the tax you owe for the current year or 100% of the tax you owed for the previous tax year.

                        In some softwares you have to supply your prior years amount of tax in order for it to do the calculation.

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