Deductions & credits

Not everyone is eligible for the full Child Tax Credit or the full Additional Child Tax Credit.  

If you look at line 11 of your 1040, your Child Tax Credit cannot exceed that number.  So, if your tax liability is only $1,000, that is the maximum Child Tax Credit you will be eligible for.  If it is zero, then you would not get any child tax credit.  This is a non-refundable Credits and will only reduce your tax liability to zero.

The Additional Child Tax Credit is refundable. The refundable portion is approximately 15% of your Earned income along with a few other calculations.  You will see this amount listed on line 17b schedule 8812. 

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