Here's what you need to know about the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) the refundable portion and the Credit for Other Dependents (ODC).
- Beginning with tax year 2018 and through tax year 2025, you may be able to claim ODC, a new nonrefundable credit for each eligible dependent who can't be claimed for the child tax credit.
- Know that for CTC/ACTC:
- The maximum amount of CTC per qualifying child is $2,000.
- The refundable part of the credit, ACTC, is worth up to $1,400 for each qualifying child.
- A qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).
- CTC/ACTC begins to decrease in value if your 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 2555EZ (excluding foreign earned income).
- Know who is a qualifying child for CTC/ACTC. The child must:
- Be under 17 at the end of the tax year.
- Meet the relationship and residency tests for uniform definition of a qualifying child, see the Child-Related Tax Benefits Comparison Chart.
- Not provide more than half of his or her own support for the tax year
- Have lived with you for more than half the tax year (see Publication 972 , Child Tax Credit, for exceptions for birth or death during the year, temporary absences, kidnapped or missing or children of divorced or separated parents)
- 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 U.S. citizen, U.S. National or a U.S. resident alien. For more information see Publication 519 , U.S. Tax Guide for Aliens.
- Must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).
- Know that for ODC:
- This is a non-refundable tax credit of up to $500 per qualifying person.
- The credit begins to decrease in value if your adjusted gross income exceeds $200,000 ($400,000 for married filing jointly).
- Know who is a qualifying dependent for ODC. The dependent must be:
- A dependent claimed on your return.
- A dependent who can't be claimed for the CTC/ACTC.
- A U.S. citizen, U.S. national, or U.S. resident alien. For more information see Publication 519 , U.S. Tax Guide for Aliens.
- A dependent is not required to have an SSN. They can have an SSN, ITIN, or ATIN that was issued before the due date of the return (including extensions).
- Know how to Avoid Common ACTC Errors and keep good records
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Protect your clients by knowing the questions to ask to help your client's get the most out of refundable credits.
Compare child related benefits at a glance on our Child-Related Tax Benefits Comparison chart
Forms and Publications
Publication 972 , Child Tax Credit
Schedule 8812 , Child Tax Credit
Publication 4298 , EITC, efile and Child Tax Credit Poster
What other resources do we have for you? Check out the EITC Central and Other Refundable Credits welcome page