The refundable element of the child tax credit was the additional child tax credit. The supplementary child tax credit reimbursed the taxpayer for the unused amount of the child tax credit because the child tax credit was non-refundable.
The Additional Child Tax Credit is a refundable credit that you may receive if your Child Tax Credit is greater than the total amount of income taxes you owe.
Families who owed the IRS less than the amount of the qualified child tax credit were eligible to apply for additional child tax credit.
To qualify, you must earn at least $2,500 annually. Your credit line can be capped at 15% of your earned income over $2,500 if your income is modest.
For each child, the maximum Additional Child Tax Credit is $1,400. The difference of $600 between the $2,000 child Tax Credit and the $1,400 Additional Child Tax Credit for each child is forfeited if you don't use any of your Child Tax Credit.
A child tax credit advance payment is a lump sum payment from the IRS that represents 50% of the estimated child tax credit that you are eligible to receive on your 2021 tax return.
If your child meets the requirements, you are eligible for ACTC payments. Payments made under the advance child tax credit are not considered to be income and won't be included on your tax return.