Hal_Al
Level 15

Deductions & credits

Q. Can you get ACTC if your tax liability is already 0?

A. Yes, but you must have more than $2500 of earned income.

 

Example: Single Mom has 4 kids and $10, 000 on a W-2.  She has tax no liability (her standard deduction gets he taxable income to 0), so there is no CTC.

 

10,000 - 2500 = $7500 eligible for the ACTC.  $7500 x 15% = $1125 is all the ACTC she will get despite having 4 kids.  She will also get some Earned Income Credit (about $4500) if she otherwise qualifies.