1. What is Additional Child Tax Credit?

The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. If your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit for the difference.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Total CTC \) — Your total Child Tax Credit amount
• \( Tax Liability \) — Your total tax liability before credits

Explanation: The Additional CTC is the portion of your Child Tax Credit that exceeds your tax liability and may be refunded to you.

3. Importance of Additional CTC

Details: The Additional CTC can provide significant financial relief to families with children, especially those with lower incomes who may not have enough tax liability to use the full Child Tax Credit.

4. Using the Calculator

Tips: Enter your total Child Tax Credit and your tax liability in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and Additional CTC?
A: The Child Tax Credit is non-refundable up to $2,000 per child, while the Additional CTC is the refundable portion of this credit.

Q2: What is the maximum Additional CTC I can receive?
A: For 2023, the maximum refundable amount is $1,600 per qualifying child.

Q3: Who qualifies for Additional CTC?
A: Taxpayers with earned income above $2,500 who have qualifying children and whose Child Tax Credit exceeds their tax liability.

Q4: How is Additional CTC paid?
A: It's paid as part of your tax refund after you file your tax return.

Q5: Can I get Additional CTC if I have no tax liability?
A: Yes, if you have earned income above $2,500 and meet other requirements, you may qualify for Additional CTC even with no tax liability.