Child Tax Credit 2023 - What is the Additional Child Tax Credit (ACTC)

For 2023 updates & examples:    • Child Tax Credit 2024 Updates - Wait ...  

The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit (CTC). The CTC is generally a nonrefundable tax credit which is a dollar-for-dollar reduction in the taxes owed. If, however, the total tax is reduced to zero, and the entire amount of the CTC has not been utilized, there may be a refundable portion under the ACTC.

The ACTC must be completed on Form 8812 in Part II-A and is limited to $1,500 per child.

Child tax credit amounts for the 2022 tax year changed from 2021. Under the American Rescue Plan of 2021, the CTC was increased to $3,000 or $3,600 per child, depending upon the child's age.

The increased amounts expired, meaning the credit amounts reverted back to the 2020 year amounts. The child tax credit is now $2,000 per child under the age of 17, with income phaseouts starting at $200,000 for single filers and $400,000 for married filing joint taxpayers.

The CTC is claimed on IRS Form 8812 and attached to the taxpayer's Form 1040.

For a larger database of tutorials, please visit our website and search for your question:
https://knottlearning.com/

DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

#ChildTaxCredit #ChildTaxCreditUpdate #Form8812