To what level of earned income is the Additional Child Tax Credit available?

The Additional Child Tax Credit (ACTC) is designed to provide additional financial support to families who have qualifying children and meet certain income requirements. This credit is a refundable tax credit, meaning it can reduce the tax owed to zero and provide a refund for any excess amount.

The key threshold for eligibility regarding earned income focuses on the minimum earned income level needed to claim the credit. For the Additional Child Tax Credit, the threshold is set at $3,000. This means that a taxpayer must have earned income above $3,000 to qualify for the ACTC. The credit itself is calculated based on the number of qualifying children and is contingent on the taxpayer's income level, making it essential for them to meet this income requirement to reap the benefits of the credit.

Households earning less than $3,000 would not be eligible for the Additional Child Tax Credit, as their income falls below the stipulated threshold. This special characteristic of the ACTC provides a safety net for lower-income families with children, allowing them a measure of financial assistance beyond what's provided through the regular Child Tax Credit, which is non-refundable.