PA UC and Child Tax Credit minimum income requirements - can 1 month of work qualify?
So confused about this Child Tax Credit situation with PA unemployment... I worked just one month (January) before getting laid off and collecting UC benefits since February. I'm hearing mixed things about whether I qualify for the Child Tax Credit since most of my 2025 income is from unemployment. I know unemployment compensation doesn't count toward the earned income requirement, but is my one month of actual work enough to meet the minimum threshold? Does anyone know the exact amount you need to earn from actual employment to qualify? I have two kids and really counting on that credit for my tax return this year. Thanks for any help!
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Diego Fisher
For 2025, you need at least $2,500 in earned income to qualify for the Child Tax Credit. Unemployment compensation doesn't count as earned income for this purpose. So the question is whether your one month of work in January exceeded $2,500 (before taxes). If it did, you should qualify. If not, unfortunately you wouldn't meet the minimum threshold.
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Evelyn Kim
•Thanks for the info! I made about $2,100 before taxes in January so I guess I'm just shy of qualifying? That really sucks, I was counting on that money for bills. Is there any way around this or am I just out of luck?
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Henrietta Beasley
The person above is correct about the $2,500 minimum. But keep in mind that ANY earned income counts - not just your main job. Did you do any side gigs, freelance work, cash jobs, etc.? Even small amounts can help you reach that threshold if you're close.
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Evelyn Kim
•I did babysit for my neighbor a few times and got paid cash... maybe like $200 total? Would that count if it was just informal work?
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Lincoln Ramiro
When I was on UC last year my tax guy told me i had to report ALL income even babysitting and stuff you get paid cash for. so technically that would count toward your earned income i think??? but then you'd also have to report it on your taxes sooo....
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Faith Kingston
•You absolutely must report ALL income to both the IRS and PA UC! Failing to report income to unemployment is fraud and can result in having to pay back benefits plus penalties. And yes, technically even cash babysitting income should be reported on your taxes as self-employment income.
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Emma Johnson
the system is so unfair!!! I was in the same boat but missed the cutoff by like $100 and lost thousands in tax credits. meanwhile ppl who work minimal hours get the full amount. makes NO sense how they set this up!!!
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Liam Brown
•I get your frustration, but the earned income requirement exists to incentivize work. The child tax credit is designed as a work support. There are other benefits specifically for people with limited income regardless of source. It's not perfect but that's the logic behind it.
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Olivia Garcia
Have you tried calling the PA UC office to ask about this? They might be able to explain how it all works with your specific situation. I know it's almost impossible to get through though. I spent 3 weeks trying to reach someone when I had a question about my benefits.
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Henrietta Beasley
•If you're having trouble reaching PA UC, you might want to try Claimyr. It helped me get through to an agent when I was dealing with an issue about my benefit year. You can see how it works at https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 and then sign up at claimyr.com if you want to try it. Though for tax questions specifically, you might be better off talking to a tax professional since this is more of a tax issue than a UC issue.
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Liam Brown
To clarify some misinformation here: UC agents likely won't be able to help with tax credit questions - that's more IRS territory. However, regarding your income situation, if you're just a few hundred short of the $2,500 threshold, there's still time in 2025 to earn that additional income. Even seasonal or temporary work before the end of the year would count toward your earned income total for 2025 tax purposes. This could help you qualify for the Child Tax Credit if you can earn the difference.
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Evelyn Kim
•That's a really good point! I didn't even think about the fact that I could still work more this year to hit the threshold. I've been avoiding taking small jobs because I was worried about how it would affect my UC benefits, but maybe I should look for something part-time to at least get enough for the tax credit. Thanks!
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Faith Kingston
Just to add some important information: If you do take on additional work, remember that you must report all earnings when filing your weekly UC claims. In PA, you can work part-time and still receive partial benefits as long as you don't earn more than your weekly benefit rate plus 40% (called the Partial Benefit Credit). This could allow you to both earn the additional income needed for tax purposes while still receiving some UC benefits.
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Lincoln Ramiro
•Oh thats good to know!! i thought if u worked at all they just cut off ur benefits completely. maybe i should look for a few shifts somewhere then...
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Diego Fisher
One last thing to consider - there are two distinct credits that people often confuse: the Child Tax Credit (CTC) and the Additional Child Tax Credit (ACTC). While both require earned income, they have different rules. With your situation, you should definitely speak with a tax professional who can look at your specific numbers and help you maximize your eligible credits. Some free tax prep services like VITA might be available in your area if cost is a concern.
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Evelyn Kim
•Thanks everyone for the helpful advice! I'm going to look into some part-time work options to reach that $2,500 threshold, and I'll make sure to report everything properly on my weekly claims. I'll also check out VITA for tax help when filing season comes around. Really appreciate all the information!
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Anna Xian
Just wanted to add that if you're looking for quick ways to earn that extra $400 to reach the $2,500 threshold, consider gig work like DoorDash, Uber Eats, or Instacart. These platforms let you work flexible hours around your UC schedule, and the income counts as self-employment earnings. You'll get a 1099 at year-end which makes tax reporting straightforward. Just remember to track your expenses (gas, mileage, etc.) since you can deduct them as business expenses. And definitely report all earnings to PA UC when you file your weekly claims!
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