Additional Child Tax Credit In California
The Additional Child Tax Credit (ACTC) is the refundable portion of the federal Child Tax Credit, allowing families who owe little or no federal tax to still receive up to $1,700 per qualifying child in 2025. It is calculated based on earned income above a threshold, making it especially valuable for working families with moderate incomes.
California does not have a direct state equivalent of the ACTC, but the state offers its own Young Child Tax Credit and the California Earned Income Tax Credit, which can complement the federal benefit for lower- and middle-income families. California filers with children under six should check eligibility for the Young Child Tax Credit, which is refundable and often missed.
California residents claim the ACTC on Schedule 8812 of their federal return. Given California's high cost of living, many families in the state qualify even with relatively higher gross incomes, and combining federal and state credits can meaningfully increase a household's total refund.