Important to Understand: The expanded Child Tax Credit (CTC)provisions that were available in Tax Year 2021 have expired. Unless Congress enacts further legislation, the the rules governing the CTC and additional child tax credit (ACTC) revert to what they were prior to 2021.

The Child Tax Credit (CTC) is a nonrefundable credit that allows taxpayers to claim a tax credit of up to $2,000 per qualifying child, which reduces their tax liability. Taxpayers who are not able to claim the full amount of the CTC may be able to take the refundable additional child tax credit (ACTC). If eligible, this may result in a refund even if the taxpayer does not owe any tax.

To be eligible to claim the credit, the taxpayer must have at least one qualifying child. A child must meet the following criteria to be a qualifying child:

• Is under age 17 on December 31 of the tax year

• Lived with the taxpayer for more than six months of the year unless they meet special rules for divorced or separated parents or parents who live apart)

• Did not provide over half of his or her own support

• Meets the relationship criteria

• Is a U.S. citizen, U.S. national, or resident of the United States

• Has a valid Social Security number

The CTC and ACTC stop once the child reaches age 17, regardless if the child is disabled.

The maximum amount taxpayers can claim for the child tax credit (CTC) is $2,000 for each qualifying child. The amount claimed depends on the taxpayer’s fililng status, modified adjusted gross income (MAGI) and tax liability. Taxpayers who do not get the full $2,000 of the child tax credit may qualify for the additional child tax credit (ACTC). This credit allows eligible taxpayers to claim up to $1,500 for each qualifying child. For taxpayers with earned income over $2,500, the credit is based on the lesser of:

• 15% of the taxpayer’s taxable earned income that is over $2,500 or

• The amount of unused child tax credit (caused when tax liability is less than allowed credit)

Please note: The refund for taxpayers claiming the child tax credit will not be issued prior to February 15.