Tax Tools

How does the Child Tax Credit work?

The Child Tax Credit (CTC) is a non-refundable tax credit for each qualifying child you carry on your federal tax return.

The credit is worth up to $2,000 per child but is limited to the amount of tax you owe on your return. The remainder amount cannot be taken as a refund. However, if you are unable to take the full Child Tax Credit because your tax liability is less than the amount of the CTC, you may qualify for the Additional Child Tax Credit – which is fully refundable (up to $1500 per/child).

What’s more, starting in 2018, you could receive a personal tax credit of up to $500 for other qualified dependents in your household.

You have enough on your plate with juggling home, work and caring for your children – sit down with one of our Tax Pros and you’ll be glad you did! Our Tax Preparation Experts are IRS certified and go through a rigorous training process to insure accuracy, satisfaction and maximum refund – guaranteed!

Use our easy CTCulator to find out if you qualify to claim the Child Tax Credit on your tax return.


Tips for Maximizing Benefits of Child Tax Credit

Take Advantage of the Full Credit Amount

Go for the Additional Child Tax Credit

You can avail of a tax credit of up to $2,000 for each qualified child. Make sure to apply for it to get the maximum benefit. Suppose you have three qualified children and apply for a child tax credit for all of them to get the maximum amount from the government. If you’re unable to claim the full tax credit amount, consider applying for an additional child tax credit. However, the rules for applying for it are a bit complex. No need to worry; we’ll guide you through the process to help you know what you need.

Apply for Child and Dependent Care Credit

Ensure your Records Are Accurate

If you’re paying for childcare so you can work, claim the child and dependent care credit. This credit is worth up to $1050 for a single child, while $2100 for two or more. Don’t miss out on the opportunity to reduce your tax burden. Make sure all childcare expenses are kept accurate. This will ensure a stress and hassle-free process.


Why Go for ATC?

If you’re facing any difficulty in availing of a child tax credit, just know your local tax preparer ATC Income Tax is just a call away. Here’s why we’re the best:

Tax Preparation Experts

Your Tax Squad Tailored to You

For over 20 years, ATC Income Tax has been guiding individuals with their tax returns and credits. Just know we’re certified experts when it comes to taxes. ATC Income Tax is your partner in all things tax. Whether you’re aiming for a tax refund advance or applying for a child tax credit, we’ll help you where you need it.

Rock-Solid Reputation

Refund Assurance

We’ve been in the tax game for over 20 years, and our tax experts bring more than 50 years of tax industrial knowledge with them. Your child tax credit is in safe hands. We’re here to make sure you’re stacking up on tax credit while applying for tax returns.

Child Tax Credit Calculator

How many qualifying children under the age of 17 are you claiming on tax return?

(Enter number of children inside of box)

Did the qualifying child or children live with you for more than 6 months during the tax year?

(See *exceptions below – if applicable answer "Yes")

How many qualifying dependents are you claiming on your tax return that are 17 years of age or older?

(Enter number of children inside of box)

Did the qualifying dependents live with you ALL year during the tax year?

(See *exception below for "parents" – if applicable answer "Yes")

What was your Adjusted Gross Income - AGI - for the tax year?

(Enter Income inside of a box)

What is your filing Status?
Choose one:


Based on the info you provided, you may qualify for the following:

Child Tax Credit (CTC): up to $
- Refundable CTC: up to $
Other Dependent Credit: up to $
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based on the information you provided, you cannot claim the Child Tax Credit.

However, you may eligible for other credits & deductions.

Free Tax Consultation!

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Qualifying Child Rules & Assumption for the CTCulator

  • The earned income threshold for the refundable credit is lowered to $2,500.
  • The beginning credit phaseout for the child tax credit increases in 2018 to $200,000 ($400,000 for joint filers).
  • The qualifying child must not provide more than half of his or her own support
  • You must be able to claim the qualifying child as a dependent on your tax return (must meet all 4 tests in order to claim your child as a dependent – see your preparer for more info)
  • The CTCulator does not take into account any exclusion of income from Puerto Rico and Foreign Earned Income from the following forms: 2555 Lines 45&50; 2555-EZ Line 18 and 4563 Line 50
  • The qualifying child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
  • Qualifying Child: Relationship to child must be son or daughter, a stepchild, brother or sister, stepbrother, stepsister and any of their descendants. A foster child must be placed with you by a court or authorized agency. An adopted child is always treated as your own child.
  • Qualifying Other Dependent: All of the "Qualifying Child" relationships above for ages over the of 16 and other relatives including mother, father, grandparents, aunt, uncle, brother-in-law, sister-in-law, daughter-in-law, son-in-law, son or daughter of your half-brother or half-sister or any member of your household that lived with you all year.
  • The child cannot file a joint return (or file it only to claim a refund).

Qualifying Child Test must meet all 6 tests below:

  • Age Test: The child was under age 17 (so 16 or younger) at the end of the tax year.
  • Relationship Test:  The child is your daughter, son, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-sister or half-brother. The child can also be the direct descendant of any of those just mentioned (e.g. your grandchild, niece or nephew).
  • Support Test: The child did not provide more than half of their own "support." This is money they use for living expenses. The child also cannot file a joint return that year.
  • Dependent Test: The child must be claimed as your dependent on your federal tax return.
  • Citizenship Test: The child must be a U.S. citizen, a U.S. national or a U.S. resident alien. For the 2018 tax year, the child must also have a Social Security Number.
  • *Resident Test: The child must have lived with you for more than half of the tax year. (*exception - temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military services or detention in a juvenile facility, are counted as time the child lived with you)

Affordable Care Act (ACA)

Affordable Care Act (ACA) and what it means for your taxes

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