The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit (CTC). Unlike the nonrefundable Child Tax Credit, the ACTC may increase your refund, even if you owe little or no federal income tax.
Our software automatically determines whether you qualify and calculates the credit based on the information entered on your tax return.
What Is the Additional Child Tax Credit?
The ACTC helps eligible taxpayers receive part of the Child Tax Credit as a refund when they can't use the full credit to offset their tax liability.
In other words, if your Child Tax Credit is larger than the tax you owe, you may be eligible to receive a portion of the remaining credit as a refund through the ACTC.
Who Qualifies for the ACTC?
You may qualify for the Additional Child Tax Credit if:
- You have at least one qualifying child.
- Your Child Tax Credit is limited because your tax liability is too low to use the full credit.
- You have earned income above the IRS minimum threshold.
How Is the ACTC Calculated?
The ACTC is calculated using Schedule 8812, Credits for Qualifying Children and Other Dependents.
Depending on your situation, the calculation may be based on:
- A percentage of your earned income above the annual IRS threshold, or
- Special rules that apply to taxpayers with three or more qualifying children.
Because the calculation can be complex, our software completes it automatically and includes any eligible credit on your return.
How to View Your Additional Child Tax Credit
To see whether an ACTC amount has been calculated on your return:
- Select Review/Summary from the left navigation menu.
- Click the section labeled Payments.
- Look for the line labeled Additional Child Tax Credit.
Any refundable credit included in your return will appear there.
What If I Don't See the ACTC?
If the ACTC isn't showing on your return, review the following:
- Your child meets all Child Tax Credit eligibility requirements.
- Your child has a valid Social Security number.
- Your earned income meets the minimum IRS requirement.
- Your dependent information is entered correctly, including date of birth, relationship, and residency details.
Even a small error in the dependent section can prevent the credit from calculating correctly.
Additional Information
To learn more about the Child Tax Credit and Additional Child Tax Credit, review our Knowledgebase article about Schedule 8812, Credits for Qualifying Children and Other Dependents.
Our software automatically checks your eligibility for both credits and helps ensure you receive any Child Tax Credit or Additional Child Tax Credit you're entitled to claim.