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I File single Head of Household, I have 1qualified dependent child, my earned income is $2,778. Why is my CTC $0 and my Additional Child Tax Credit only $42?

Max amount of CTC + Advanced CTC is only $42. Why no CTC and why only $42 of Advanced CTC?
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1 Reply
Vanessa A
Employee Tax Expert

I File single Head of Household, I have 1qualified dependent child, my earned income is $2,778. Why is my CTC $0 and my Additional Child Tax Credit only $42?

The CTC is a non refundable credit.  You can only claim it if you have a tax liability, which you would not since your income is less than your standard deduction.

The ACTC is $42 because that is calculated based on income.  To calculate it, you would subtract $2,500 from your earned income and multiple that by 15%.  So in your case it would be 15% of $278 which is $42 would be your maximum credit. 

What is the Additional Child Tax Credit?

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