What is Child Tax Credit and Additional Child Tax Credit?

Child Tax Credit and Additional Child Tax Credit were created to provide tax benefits to families with qualifying children. Both credits are claimed on Form 8812. Dependents who do not qualify for Child Tax Credit may qualify for the Other Dependent Credit.

Special rules existed for CTC in tax year 2021, for more information reference 2021 Child Tax Credit Changes: ARPA ACT.

Child Tax Credit

The Child Tax Credit (CTC) is a credit worth up to $2,000 (2022), for dependent children ages 0-16 that meet certain tests and conditions. This credit is non-refundable. If a taxpayer does not claim the full CTC, they might be eligible for the Additional Child Tax Credit (ACTC). 

Additional Child Tax Credit

When a taxpayer does not claim the full child tax credit, they may be eligible to claim the ACTC. The ACTC is a credit worth up to $1,500 (2022) for dependent children ages 0-16 that meet certain tests and conditions. This credit is considered refundable.

With the exception of tax year 2021, Child Tax Credit and Additional Child Tax Credit require earned income of $2,500.