What you need to know about CTC, ACTC and ODC

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Here's what you need to know about the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) and the Credit for Other Dependents (ODC).

CTC/ACTC

The Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) are credits for individuals who claim a child as a dependent if the child meets certain eligibility requirements. The CTC is a nonrefundable credit and the ACTC is a refundable credit.

  • A qualifying child for CTC/ACTC must:
    • Be under 17 at the end of the tax year.
    • Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).
    • Not provide more than half of his or her own support for the tax year.
    • Have lived with you for more than half the tax year.
    • Be claimed as a dependent on your return.
    • Not file a joint return for the year (or filed the joint return only to claim a refund of taxes withheld or estimated taxes).
    • Be a U.S. citizen, U.S. National or a U.S. resident alien.
    • Must have a Social Security Number that is valid for employment and is issued before the due date of your tax return (including extensions).
  • Limits on CTC/ACTC:
    • The maximum amount of CTC per qualifying child is $2,000.
    • The refundable part of the credit, ACTC, is worth up to $1,700 for each qualifying child.
    • CTC/ACTC begins to decrease in value if your adjusted gross incomes exceed $200,000 ($400,000 for Married Filing Jointly).
    • ACTC is not allowed if you or your spouse (if filing a joint return) file a Form 2555 or Form 2555EZ (excluding foreign earned income). 

ODC

The Credit for Other Dependents (ODC) is a non-refundable tax credit available to taxpayers for each of their qualifying dependents who can't be claimed for the Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC).

  • A qualifying dependent for ODC must:
    • Be a dependent claimed on your return.
    • Be a dependent who can't be claimed for the CTC/ACTC.
    • Be a U.S. citizen, U.S. national, or U.S. resident alien.
    • Have an SSN, ITIN, or ATIN that was issued before the due date of the return (including extensions).
  • Limits on ODC:
    • For tax year 2018 through tax year 2025, you may be able to claim ODC.
    • The maximum credit amount is $500 for each qualifying person.
    • The credit begins to decrease in value if your adjusted gross income exceeds $200,000 ($400,000 for married filing jointly).

 Use the Interactive Tax Assistant to see if you’re eligible to claim the CTC, ACTC or ODC.

Resources

Child Tax Credit

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