Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Child Tax Credit

Additional Child Tax Credit

Additional Child Tax Credit

The additional child tax credit is for certain individuals who do not qualify for the full amount of the (nonrefundable) child tax credit. The additional child tax credit is refundable, so it may entitle taxpayers to a refund, even if they do not owe any tax.

Like the child tax credit, the additional child tax credit allows eligible taxpayers to claim up to $1,000 for each qualifying child after subtracting the allowable amount of child tax credit. For taxpayers with earned income over $3,000, the credit is based on the lesser of:

  • 15% of the taxpayer's taxable earned income that is more than $3,000 or
  • The amount of unused child tax credit (caused when tax liability is less than allowed credit)

Taxpayers who do not get the full $1,000 of the child tax credit may qualify for the additional child tax credit. For detailed requirements, see the Additional Child Tax Credit Tip in the Volunteer Resource Guide, Nonrefundable Credits tab.

Example

Remember May and Bob? They have two qualifying children, a MAGI of $86,000, and a tax liability of $954. Because their tax liability is less than the full amount of the credit, they may be able to take the additional child tax credit of up to $1,046 ($2,000 - $954).

Collage of Form 1040 and Form 1040A highlighting the additional child tax credit line.