What is the Additional Child tax credit?

The Additional Child tax credit (ACTC) is the refundable portion of the Child tax credit, allowing eligible families to receive up to $1,400 per qualifying child as a refund even when tax liability is zero. Under the One Big Beautiful Bill Act, this amount will be adjusted for inflation starting in 2025. Families calculate the ACTC on Schedule 8812, and each qualifying child must have a valid Social Security Number. MFS filers may claim the ACTC if their qualifying child meets residency and dependency requirements. Child & dependent tax credits cover strategies to maximize this benefit.

Related Terms

What is a Child tax credit?

What is Married filing separately status?

What is Schedule 8812?

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Tax loss harvesting

Transform investment losses into strategic tax advantages and optimize your portfolio's performance with AI-driven precision.

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Child traditional IRA

Open a Traditional IRA for children with earned income. Contribute up to $7,000 annually with full deduction, giving them decades to grow tax-free.

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Employee achievement awards

Award your team for service milestones and safety achievements while maximizing allowable deductions up to $1,600 per employee.

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Health reimbursement

Set aside money on a pre-tax basis to pay for qualified medical expenses to maximize tax savings opportunities.

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Child & dependent tax credits

Claim up to $2,000 per child & $500 per other dependent. Automatically maximize your child and dependent-related tax credits.

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Health savings account

Set aside money on a pre-tax basis to pay for qualified medical expenses to maximize tax savings opportunities.

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Employee achievement

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Work opportunity tax credit

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Oil & gas deduction

Drill into tax savings. Maximize deductions for both tangible and intangible drilling costs.

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Hiring kids

Reduce taxable income & self-employment tax by hiring your kids.

Home office

Deduct qualified expenses for using your home for business purposes.

Meal expenses

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Travel expenses

Businesses can deduct necessary travel expenses, like airfare and lodging, directly related to operations for tax savings.

Vehicle expenses

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Late S election

A Late S Election lets a corporation request IRS S corp status post-deadline.

Late C election

A Late C Election is a request to the IRS for C corporation status after the deadline.

Depreciation

Put your fixed assets to work for you by utilizing depreciation to find and compare tax savings in minutes.

R&D tax credit

Fuel your venture's growth and innovation with the R&D tax credit. Not just for tech firms or big corporations.

Clean vehicle

Businesses and Individuals can receive a tax credit for purchasing new eco-friendly vehicles. Individuals may also qualify on used eco-friendly vehicles.

Residential clean energy

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Augusta rule

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Roth 401k

Roth 401(k) lets employees and individuals make after-tax retirement contributions, offering tax-free growth and withdrawals.

Traditional 401k

Traditional 401(k) plans offer pre-tax retirement savings for employees, with companies reducing taxable income via contributions.