What you need to know about child tax credits

The Child Tax Credit (CTC), Additional Child Tax Credit (ACTC) and Credit for Other Dependents (ODC) are child tax credits for qualifying dependents.

Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)

The CTC and ACTC are tax breaks designed to help families with the costs of raising children. If you qualify, these credits can reduce the amount of federal income tax you owe. You may be able to claim these credits even if you don't normally file a tax return.

• The CTC is a non-refundable credit that allows people with a qualifying child to reduce their tax liability.
• The ACTC is a refundable tax credit per qualifying child and is for people who receive less than the full amount of their CTC.

If the CTC reduces your tax liability to zero and you still have some credit left over, you might be eligible for the ACTC. This refundable credit can provide you with a refund even if you don’t owe any tax. 

• A qualifying child for CTC/ACTC must:
  • Be under 17 at the end of the tax year.
  • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece, or nephew).
  • Not provide more than half of their own support for the tax year.
  • Have lived with you for more than half the tax year.
  • Be claimed as a dependent on your return.
  • Not file a joint return for the year (or filed the joint return only to claim a refund of taxes withheld or estimated taxes).
  • Be a U.S. citizen, U.S. national or a U.S. resident alien.
  • Must have a Social Security Number that is valid for employment and is issued before the due date of your tax return (including extensions).
• Limits on CTC/ACTC:
  • The maximum amount of CTC per qualifying child is $2,000.
  • The refundable part of the credit, ACTC, is worth up to $1,700 for each qualifying child.
  • CTC/ACTC begins to decrease in value if your adjusted gross incomes exceed $200,000 ($400,000 for married filing jointly).
  • ACTC is not allowed if you or your spouse (if filing a joint return) file a Form 2555 or Form 2555-EZ (excluding foreign earned income).

Credit for Other Dependents (ODC)

The ODC is a non-refundable tax credit available to taxpayers for each of their qualifying dependents who can't be claimed for the CTC or ACTC.

• A qualifying dependent for ODC must:
  • Be a dependent claimed on your return.
  • Be a dependent who can't be claimed for the CTC/ACTC.
  • Be a U.S. citizen, U.S. national, or U.S. resident alien.
  • Have an SSN, ITIN, or ATIN that was issued before the due date of the return (including extensions).
• Limits on ODC:
  • For tax year 2018 through tax year 2025, you may be able to claim ODC.
  • The maximum credit amount is $500 for each qualifying person.
  • The credit begins to decrease in value if your adjusted gross income exceeds $200,000 ($400,000 for married filing jointly).

Resources

Child Tax Credit

• Interactive Tax Assistant
• Avoid common CTC, ACTC and ODC errors
• Social media and EITC
• Child Tax Credit
• Find tax information for parents

Useful forms and publications

• Schedule 8812 (Form 1040), Credits for Qualifying Children and Other Dependents
• Publication 501, Dependents, Standard Deduction and Filing Information
• Publication 519, U.S. Tax Guide for Aliens

Child Tax Credit marketing materials

• Publication 4298, A Federal Tax Refund may be waiting for you, even if you’re not required to file PDF
• Publication 5811, Child Tax Credit PDF

Tax tip

• Tax tip 2021-144, Taxpayers who aren’t eligible for the Child Tax Credit should look into the credit for other dependents

Tax preparation assistance

• Get free tax preparation help
• Choose a tax professional

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