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New Member
posted Jan 15, 2023 2:15:25 PM

Is the Additional Child Tax Credit the same as Child Tax Credit. I’m confused. Is there any differences between the two?

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5 Replies
Level 15
Jan 15, 2023 4:01:32 PM

The additional child tax credit is the refundable portion of the child tax credit.   The CTC can lower your tax liability by $2000, and if you do not owe that much, you can receive up to $1500 as the refundable part--it will go on line 28 of your Form 1040.

 

 

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500.  If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

 

 

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-for-other-dependents

Level 15
Jan 15, 2023 4:01:57 PM

Look at your 2022 Form 1040 to see the child-related credits you received

 

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

 

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

Level 15
Jan 15, 2023 4:01:59 PM

the additional child tax credit was an addition to the child tax credit.

the additional child tax credit is not available for 2022 tax return.

Level 15
Jan 15, 2023 5:13:18 PM

@fanfare 

 

Not quite ...  

 

The additional child tax credit is the refundable portion of the child tax credit.   The CTC can lower your tax liability by $2000, and if you do not owe that much, you can receive up to $1500 as the refundable part--it will go on line 28 of your Form 1040.

Level 15
Jan 15, 2023 5:15:40 PM

The child tax credit  (CTC) is  limited to your tax liability. The CTC is a non-refundable credit and can only reduce your income tax to 0, It can not help you beyond eliminating your tax liability.

 

But, if you have more than $2500 of earned income, some or all of it is usually given back to you thru the "Additional Child tax credit". That is, part of the CTC may be on line 28 of form 1040 (2021 & 2022) instead of line 19. The  ACTC is calculated on form 8812 and  is basically 15% of your earned income over $2500. The ACTC is a maximum of $1500 per child (not $2000).