Child Tax Credit and Additional Child Tax Credit

What this actually is

The Child Tax Credit is worth up to $2,200 per qualifying child. Most of it only reduces tax you owe — but the ADDITIONAL Child Tax Credit is the refundable piece, up to $1,700 per child, paid to you as cash even if you owe no tax. That distinction is the thing people miss. If your income is low, the refundable $1,700 is the part that actually reaches your bank account, and you have to file a return to get it. There is also a separate Credit for Other Dependents worth up to $500 for dependents who do not qualify for the CTC — an older teenager, a parent you support.

Who qualifies, and what trips people up

The child must be under 17 at the end of the tax year and have a Social Security number valid for employment, issued before the return’s due date including extensions. You need an SSN too. Full credit up to $200,000 income ($400,000 married filing jointly), partial above that. For the refundable Additional CTC you must have at least $2,500 of earned income. The Credit for Other Dependents accepts an ITIN or ATIN, the CTC does not.