Possibly. Each state has different rules for child credits. The following guidelines are for the federal Additional Child Tax Credit.
The Additional Child Tax Credit (ACTC) can make at least a portion of your unused regular Child Tax Credit refundable if you’re eligible. Qualifications for the ACTC are the same as the requirements for the Child Tax Credit, except you also need to have at least $3,000 in earned income. TurboTax will automatically give you this credit if you're eligible.
The Additional Child Tax Credit is up to 15% of your taxable earned income over $3,000. For example, if you have three children:
- If your earned income was $30,000, the additional credit would apply to $27,000 (the amount over the $3,000 threshold).
- 15% x $27,000 = $4,050
- You would not receive the entire $4,050 because the CTC limit is $3,000, but you could still receive the full $3,000 refund—in other words, $1,000 for each of your children.
On the other hand, if your earned income was $13,000, 15% of your taxable income over $3,000 would be $1,500 ($10,000 x .15). You could receive a refund of $1,500 as opposed to the full $3,000 credit because the refundable portion of your credit cannot exceed 15% of your taxable earned income that is above the $3,000 threshold.
To find out how much credit you are receiving, preview your 1040 and look at lines # 52 and 67.
To preview the information on your 1040 form:
- Sign in to your TurboTax account and click on 'Take Me to My Return'
- On the left, go to the black vertical menu and click on Tax Tools
- Select Tools
- Then select View Tax Summary, first on the list under Helpful Links
- On the right, on the black menu strip, click on Preview My 1040
