Overview of the Additional Child Tax Credit

If you have children that make you eligible to claim the Child Tax Credit on your tax return, you may be entitled to receive the Additional Child Tax Credit as well. The Additional Child Tax Credit, introduced as part of the Stimulus Package of 2009, is a $1000 credit available to taxpayers with qualifying children who did not receive the maximum amount of their Child Tax Credit. You are eligible to receive the Additional Child Tax Credit as a refund if you did not owe any taxes or if the Child Tax Credit reduced your liability to zero. In addition, the Additional Child Tax Credit does not interfere with the exemptions you may take on your qualifying dependents. The Additional Child Tax Credit is claimable only for tax years 2009 and 2010 as part of the stimulus package.

Eligibility

To be eligible for the Additional Child Tax Credit, you must first be eligible to claim the Child Tax Credit. There are several requirements that must be met for claiming the Child Tax Credit. You must have a qualifying child who is under 17 years old, will be claimed as a dependent, and is a U.S. citizen, national or resident alien. The qualifying child must be your biological, step- or foster child. And the child must have lived with you for more than half of the tax year. Your federal income tax liability must be more than zero. In addition, your adjusted gross income for the tax year must fall between the specified guidelines depending on your filing status. Your gross income must be no more than $110,000 per year if you are married and filing joint returns. If you are single, head of the household or widowed, the maximum income level is $75,000 per year, and it is $55,000 if you are married but separated. Finally, you must file your income taxes using one of the following forms: 1040, 1040A or 1040 NR.

Calculations

If you have met the requirements of the Child Tax Credit, you can now determine if you are eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is 15 percent of your earned income greater than $3,000 or less the amount not allowed by the Child Tax Credit. If the amount of your Child Tax Credit is decreased due to your limited tax liability, you may be eligible to claim the Additional Child Tax Credit based off your earned income. Your gross income must be no more than $110,000 per year if you are married and filing joint returns. If you are single, head of household or widowed, the maximum income level is $75,000 per year; and it is $55,000 if you are married yet separated. If your earned income is less than $3,000 and you have three or more eligible children, you may still claim the Additional Child Tax Credit up to the amount of Social Security taxes paid for that tax year. For those in the military, your combat tax-exempted pay can be used to determine eligibility for the Additional Child Tax Credit.