The supplementary child tax credit stands in for the refundable element of the child tax credit. The qualified child tax credit was available to families with IRS debts lower than that amount. The additional child tax credit repaid the taxpayer for any surplus amounts because the child tax credit is non-refundable.
Families could be eligible for the refundable Extra Child Tax Credit if they were previously eligible for the non-refundable Child Tax Credit. Families who owed less than the child tax credit and want a refund for the excess credit were the perfect candidates for the supplementary child tax credit.
According to an article published by Investopedia on March 04, 2023, a non-refundable tax credit known as the child tax credit allows some taxpayers to have their tax bill zeroed out. To be claimed as a refundable credit, nevertheless, is a fraction of this credit. The key distinction between tax credits is when they are applied to your return; other requirements are often the same.
The Child Tax Credit is available to married couples with an annual income of less than $150,000. Ahead of $112,500 in income, single taxpayers and heads of households are also qualified. Individual taxpayers with incomes under $75,000 who file under any other status may also qualify.