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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.
‎January 11, 2023
5:59 AM