Difference between a Child Tax Credit and Additional Child Tax Credit
Child Tax Credit is issued to people who have children. They can lower their tax bill by claiming tax credit on a child. If the tax balance is below zero dollars the tax credit cannot be claimed. The tax credit is non-refundable. You cannot take advantage of tax credit if the amount of your credit is more than the amount of income tax you owe.
Additional Child Tax Credit is claimed by parents if they are not getting the normal child tax credit because the amount of their credit is more than the tax they owe. They might receive payment for the portion of the Child Tax Credit that was not used to offset their taxes.
Details of Additional Child Tax Credit
If the amount of your Child Tax Credit is more than the amount of tax you owe, you may be eligible to claim the Additional Child Tax Credit, allowing you to receive a payment for the unused portion of your Child Tax Credit. The Additional Child Tax Credit is a refundable credit, which means it can reduce your tax balance below zero and result in a tax refund. Basically, if you have any portion of your Child Tax Credit “left over,” you may be eligible to receive some or all of it as a payment through the Additional Child Tax Credit. Note that the Additional Child Tax Credit is not a credit for additional children. It is a credit in addition to the regular Child Tax Credit.
Tax Help MD
If you cannot understand the method of claiming the additional tax credit you can take help from professionals at Tax Help MD. To calculate and claim your Additional Child Tax Credit, we use Schedule 8812.