Difference between CTC and ACTC

[Trista]

The Additional Child Tax Credit
If the amount of your Child Tax Credit is more than the amount of tax you owe, you may be eligible to claim the Additional Child Tax Credit, allowing you to receive a payment (i.e. tax refund) for the unused portion of your Child Tax Credit.

The Additional Child Tax Credit is a refundable credit, which means it can reduce your tax balance below zero and result in a tax refund. Basically, if you have any portion of your Child Tax Credit “left over,” you may be eligible to receive some or all of it as a payment through the Additional Child Tax Credit.

The Additional Child Tax Credit may bring you a tax refund even if you don’t owe any tax. However, if you are able to claim the full amount of the Child Tax Credit, you will not be eligible for the Additional Child Tax Credit.

Note that the Additional Child Tax Credit is not a credit for additional children. It is a credit in addition to the regular Child Tax Credit. See IRS Publication 972 (Child Tax Credit) for more information about the Child Tax Credit and the Additional Child Tax Credit.

[Kimikaze]

https://igotmyrefund.com/groups/earned-income-tax-credit-eitc-group/forum/topic/child-tax-credit-ctc-vs-additional-child-tax-credit-actc/

[Trista]

P.S. For anyone who filed a 1040A this year, line 43 on your return would reflect any ACTC amount.

[Author]

Replies