The main home requirement for the Child Tax Credit stipulates that you — or your spouse, if filing a joint return — must have your main home in one of the 50 states or the District of Columbia for more than half the year. This requirement is crucial because it determines the refundability of the Child Tax Credit.
Your main home can be any location where you regularly live, such as a house, apartment, mobile home, shelter, temporary lodging, or other location. It does not need to be the same physical location throughout the taxable year, and you do not need a permanent address. Temporary absences due to illness, education, business, vacation, or military service are generally treated as if you are still living in your main home.
If you meet the main home requirement, the Child Tax Credit is fully refundable. This means you can receive the credit as a refund even if you have no income or do not owe any tax. If your main home was not in the United States for more than half the year, you can still qualify for the Child Tax Credit, but the refundability of the credit will be limited. Specifically, the refundability will be similar to the 2020 Child Tax Credit and Additional Child Tax Credit, where the ability to claim any Additional Child Tax Credit beyond your tax liability is limited.
In summary, the main home requirement affects the Child Tax Credit by determining whether the credit is fully refundable or if its refundability is limited. Meeting this requirement ensures that you can maximize the benefit of the Child Tax Credit.
Sources:
Publication 524 (2023)
A Call for Change: Simplifying the Children’s Education Tax Credit System
§ 24. Child tax credit
Publication 501 (2023)
