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What is an Additional Child Tax Credit?

A. Leverkuhn
A. Leverkuhn

The additional child tax credit is a specific part of the overall child tax credit allowed in an annual U.S. tax filing for an individual or married couple. The child tax credit is based on a decrease in applicable income taxes for filers who have a child or dependent to take care of. Each child in a family can reduce the income tax for the head of the household by a specified amount.

A 1040 tax form or supplemental tax document may be used for listing the additional child tax credit. This is the amount of tax credit above and beyond what is subtracted from the filer’s actual tax bill. For example, if a parent filing in a specific year had only a tax bill of $500 USD on taxable income, and qualified for the child tax credit, the additional child tax credit amount would be $500 USD.

Each child in a family can help the taxpayer qualify for a tax credit.
Each child in a family can help the taxpayer qualify for a tax credit.

To qualify for the additional child tax credit, parents must satisfy specific kinds of eligibility according to what is set forth in federal Internal Revenue Service or IRS requirements. One limitation is a citizenship test, where the child must be a U.S. citizen. Another is a test of residence, where the child must be residing with the parent for at least part of a tax year.

To qualify for the Additional Child Tax Credit, citizenship and residency requirements must be met.
To qualify for the Additional Child Tax Credit, citizenship and residency requirements must be met.

Beyond the above requirements, parents may need to list children as dependents on their filing in order to be eligible for the additional child tax credit. The IRS also maintains standards on the means of support for a dependent who is listed in order for a parent to access the child tax credit. A professional tax preparer can explain each of these requirements and tell a parent or caregiver whether or not they are eligible for these kinds of tax credits.

Both individuals and married couple can claim an additional child tax credit.
Both individuals and married couple can claim an additional child tax credit.

It’s important for tax filers to understand that the child tax credit is a credit that can be refunded above and beyond the taxable income bill for a specific year. They should also understand that getting the additional child tax credit amount may require additional tax paperwork. All of this is part of a comprehensive annual tax filing that includes all taxable income, as well as numerous deductions for many things including aspects of homeownership, business expenses, dependents, and much more. Individuals can get more information from IRS customer service or hire a qualified tax accountant to help them through all of the details of their annual return and to find opportunities for saving money on federal income tax.

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    • Each child in a family can help the taxpayer qualify for a tax credit.
      By: Vera Kuttelvaserova
      Each child in a family can help the taxpayer qualify for a tax credit.
    • To qualify for the Additional Child Tax Credit, citizenship and residency requirements must be met.
      By: FMUA
      To qualify for the Additional Child Tax Credit, citizenship and residency requirements must be met.
    • Both individuals and married couple can claim an additional child tax credit.
      By: jrwasserman
      Both individuals and married couple can claim an additional child tax credit.