What the Additional Child Tax Credit Is

The Additional Child Tax Credit (sometimes called the Refundable Child Tax Credit) is a tax credit that can put money back in your pocket even if you owe little or no federal income tax. Unlike the regular Child Tax Credit, which reduces the tax you owe, the Additional Child Tax Credit can result in a refund — meaning the government sends you money instead of you sending money to them.

The credit is tied to your children and your income. If you have dependent children and your income falls below certain thresholds, you may receive a refund through this credit when you file your federal tax return. The amount varies based on how many children you have and your earned income during the year.

Key Takeaways

  • The Additional Child Tax Credit can send you a refund even if you owe zero federal tax, as long as you have earned income and dependent children.
  • You must have earned income (wages, self-employment income, or certain other sources) to claim this credit — investment income alone does not count.
  • The credit amount is limited to 15 percent of your earned income above $2,500, up to a maximum that changes each year based on inflation.
  • You claim this credit on your federal tax return using IRS Form 1040 and Schedule 8812; you cannot claim it separately or outside of tax filing.
  • Income limits and maximum credit amounts shift annually, so the exact numbers for your situation depend on the tax year you are filing for.

How Much Money You Can Receive

The amount of the Additional Child Tax Credit depends on your earned income and the number of may have access to children. The credit is calculated as 15 percent of your earned income that exceeds $2,500. For example, if you earned $15,000 and have one may have access to child, you would calculate 15 percent of $12,500 ($15,000 minus $2,500), which equals $1,875.

However, there is a cap on how much you can receive. The maximum credit per child changes each tax year due to inflation adjustments. For the 2023 tax year, the maximum was $1,700 per child, but this amount increases annually. You will receive whichever is smaller: the amount calculated from your earned income, or the annual maximum.

If you have multiple may have access to children, the credit can stack — meaning you calculate the benefit for each child separately, then add them together. The total cannot exceed the overall annual limit set by the IRS for that tax year.

Who Can Claim This Credit

To claim the Additional Child Tax Credit, you must meet several conditions. First, you must have at least one may have access to child — generally a biological child, stepchild, foster child, or sibling under age 17 at the end of the tax year who lives with you for more than half the year and is a U.S. citizen, national, or resident alien.

Second, you must have earned income during the tax year. Earned income includes wages from a job, self-employment income, or certain other sources like military housing allowances. Income from investments, unemployment benefits, or Social Security does not count toward this requirement.

Third, your income must fall below the threshold set for that tax year. Income limits vary and are adjusted annually. You will also need a valid Social Security number for yourself, your spouse (if filing jointly), and each may have access to child.

Income Limits and Thresholds

The Additional Child Tax Credit has income thresholds that determine whether you can claim it and how much you receive. These thresholds change each year. Generally, the credit begins to phase out at higher income levels, meaning the amount you can receive decreases as your income rises.

The exact income limit for your situation depends on your filing status (single, married filing jointly, head of household, and so on) and the tax year you are filing for. Because these numbers shift annually, you should check the IRS website or your tax software for the current year's limits rather than relying on prior-year information.

If your income exceeds the threshold for your filing status, you may still be able to claim the regular Child Tax Credit, but the Additional Child Tax Credit (the refundable portion) would not be available to you.

How to Claim the Credit on Your Tax Return

You claim the Additional Child Tax Credit when you file your federal income tax return. You will use IRS Form 1040 (the main individual income tax form) along with Schedule 8812, which is the worksheet specifically for calculating the Additional Child Tax Credit and other child-related credits.

On Schedule 8812, you will enter information about each may have access to child, including their name, Social Security number, and relationship to you. You will also enter your earned income for the year. The form walks you through the calculation to determine how much credit you can claim.

If you use tax preparation software, the program typically guides you through the questions needed to determine your credit amount and fills in the forms automatically. If you prepare your return by hand, you can download Schedule 8812 from the IRS website (irs.gov) or request it by mail.

What Documents You Need to Gather

Before you file, gather documents that prove your income and your children's information. You will need W-2 forms from any employers, 1099 forms if you are self-employed or received other income, and records of any other earned income you received during the year.

For each may have access to child, you will need their full legal name, date of birth, and Social Security number. You should also have proof of your relationship to the child (birth certificate, adoption papers, or custody documents) and proof that they lived with you for more than half the year. Keep these documents with your tax records, though you do not mail them with your return unless the IRS specifically asks for them.

If you are filing jointly with a spouse, you will also need your spouse's Social Security number and information about any income they earned.

When You Will Receive Your Refund

Once you file your tax return claiming the Additional Child Tax Credit, the IRS processes your return and calculates the refund amount. The time it takes to receive your refund depends on how you file and how you choose to receive the money.

If you file electronically and request direct deposit to a bank account, refunds typically arrive within 21 days of the IRS accepting your return. If you request a paper check, it may take several weeks longer. You can track your refund status using the IRS "Where's My Refund?" tool on irs.gov, which updates once per day.

The refund is not a separate payment — it comes as part of your overall tax refund (or reduces the amount you owe if you have other tax obligations). If you owe taxes from other sources, the IRS may use your Additional Child Tax Credit refund to pay those debts first.

Frequently Asked Questions

Do I have to file a tax return to get the Additional Child Tax Credit?

Yes. The Additional Child Tax Credit is only available when you file a federal income tax return. Even if your income is low enough that you would not normally be required to file, you must file to claim this credit and receive the refund.

Can I claim this credit if I did not work the entire year?

Yes, as long as you had earned income for at least part of the year. The credit is calculated based on the total earned income you reported for the tax year, even if you worked for only a few months. Self-employment income counts as well.

What is the difference between the Child Tax Credit and the Additional Child Tax Credit?

The regular Child Tax Credit reduces your tax bill dollar-for-dollar. The Additional Child Tax Credit is the refundable portion — if the credit is larger than the tax you owe, the excess is refunded to you. You claim both on the same return; Schedule 8812 determines how much of your credit is refundable.

Can I claim this credit for a child who is not a U.S. citizen?

No. The child must be a U.S. citizen, national, or resident alien to count as a may have access to child for this credit. You will need to provide their Social Security number, which generally means they have been assigned one by the Social Security Administration.

What happens if I claimed the wrong amount of credit last year?

If you made an error on a prior-year return, you can file an amended return using IRS Form 1040-X for that tax year. The IRS will recalculate your credit and either send you an additional refund or bill you for the overpayment, depending on the direction of the correction.