Additional Child Tax Credit

The Additional Child Tax Credit (ACTC) is a refundable tax credit for qualifying children under age 18. The credit is worth up to $2,000 per child and is available to taxpayers who have earned income. The credit is gradually phased out for taxpayers with modified adjusted gross income (MAGI) above certain thresholds.

The ACTC is one of the most important tax breaks for low- and middle-income families. It can help families offset the cost of raising children and make it easier for them to afford basic necessities. The credit is also an important source of economic stimulus, as it helps families put money back into the economy.

The ACTC is calculated based on the number of qualifying children and the taxpayer's MAGI. The credit is worth up to $2,000 per child, but it is gradually phased out for taxpayers with MAGI above certain thresholds. The phase-out begins at $25,000 for single filers and $50,000 for married couples filing jointly. The credit is fully phased out for taxpayers with MAGI above $45,000 for single filers and $95,000 for married couples filing jointly.

The ACTC is claimed on Form 1040 or Form 1040A. The credit is refundable, meaning that taxpayers can receive a refund even if they do not owe any taxes.

The ACTC is an important tax break for low- and middle-income families. It can help families offset the cost of raising children and make it easier for them to afford basic necessities. The credit is also an important source of economic stimulus, as it helps families put money back into the economy.