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Additional Child Tax Credit


A refundable credit that can be claimed by taxpayers who are ineligible to claim the full non-refundable child tax credit, because it exceeds their total tax liability. The additional child tax credit was created to reimburse taxpayers for the non-refundable portion of their child tax credit.

Important Facts:

  • The additional child tax credit is available to families with three or more qualified children.
  • To receive Additional Child Tax Credit, you first must qualify for the Child Tax Credit.
  • If the amount of your Child Tax Credit is limited by your income tax liability, you may be able to claim the Additional Child Tax Credit if your earned income is less than the limits for the year. The limits are:
    • Married filing jointly – $110,000
    • Single, head of household, or qualifying widow(er) – $75,000
    • Married filing separately – $55,000
  • The Additional Child Tax Credit is equal to the lesser of the unallowed Child Tax Credit, or 15% of your earned income that is more than $3,000.
  • If your earned income is not more than $3,000 and you have three or more qualifying children, you may be able to claim the Additional Child Tax Credit up to the amount of Social Security taxes that you paid for the year.
  • If you are eligible to receive the Earned Income Tax Credit, the maximum amount of Additional Child Tax Credit under this method is the total amount of Social Security taxes less the amount of the Earned Income Credit for which you are eligible.
  • The amount of the Additional Child Tax Credit is determined on Form 8812 – Child Tax Credit.

Forms

8812 – Child Tax Credit
Publication 972 – Child Tax Credit
Publication 4117 – Additional Child Tax Credit

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