The Additional Child Tax Credit is for lower-income families who owe little or no federal income tax

The Additional Child Tax Credit (also called the Refundable Child Tax Credit) lets you receive money back from the IRS even if you owe zero tax. The regular Child Tax Credit reduces the tax you owe; the additional version goes further and can result in a refund. You do not need to owe any federal income tax to receive it — the IRS will send you the difference.

This matters because most tax credits only help if you have tax liability to reduce. The Additional Child Tax Credit is designed specifically for families whose income is too low to benefit from the regular credit. The amount you receive depends on how many may have access to children you have and your earned income for the year.

Key Takeaways

  • You must have earned income (wages, self-employment income, or certain other sources) to receive the Additional Child Tax Credit — investment income alone does not count.
  • Your child must be under age 17 at the end of the tax year, have a valid Social Security number, and live with you for more than half the year.
  • The maximum refund is $1,700 per may have access to child for the 2024 tax year, though the actual amount depends on your earned income.
  • You claim the Additional Child Tax Credit on your federal tax return using Form 1040 and Schedule 8812, not through a separate application process.
  • The credit is only available if your earned income is below certain thresholds, which vary by filing status and change each year.

Income limits and earned income requirements

You must have earned income to claim the Additional Child Tax Credit. Earned income includes wages from a job, net self-employment income, or taxable combat pay if you are military. It does not include Social Security, unemployment benefits, child support, or investment income like interest or dividends.

The credit phases out as your earned income rises. For 2024, if you file as single or head of household, the credit begins to reduce once your earned income exceeds $15,000. If you file as married filing jointly, the threshold is $25,000. These thresholds change each year, so check the IRS website or your tax software for the current year's limits. The credit continues to reduce until it reaches zero at a higher income level.

You must also have a federal tax return filing requirement or choose to file even if you are not required to. Many families with very low income are not required to file, but filing is how you claim this credit.

Who counts as a may have access to child

Your child must meet four conditions. First, they must be your son, daughter, stepchild, foster child, or a descendant of any of these (such as a grandchild). Second, they must be under age 17 on December 31 of the tax year. Third, they must have a valid Social Security number issued before the tax return due date. Fourth, they must live with you for more than half the tax year — temporary absences for school, medical care, or military service do not count against this requirement.

Your child cannot be a may have access to child of another person for tax purposes. If parents are divorced or separated, the parent who has custody for the greater part of the year usually claims the child, unless they sign a form agreeing otherwise. If you are claiming a foster child, you must have legal custody or a court order placing the child with you.

How the credit amount is calculated

The Additional Child Tax Credit is calculated based on your earned income, not your total income. The IRS uses a formula: 15 percent of earned income above $2,500, up to a maximum of $1,700 per child for 2024. This means if your earned income is $2,500 or less, the credit is zero. If your earned income is $13,833 or more, you receive the full $1,700 per child (assuming you meet all other requirements).

The exact calculation depends on the tax year. The maximum amount per child and the $2,500 threshold both change annually. Your tax software or a tax preparer can calculate the exact amount for your situation. You do not calculate this yourself on the tax form — you provide your earned income and number of may have access to children, and the IRS or your software does the math.

How to claim the credit on your tax return

You claim the Additional Child Tax Credit by filing a federal tax return, even if you normally would not need to file. You will use Form 1040 (the main individual income tax form) and Schedule 8812 (Credits for may have access to Children and Other Dependents). Schedule 8812 is where you list your may have access to children and calculate the credit amount.

You can file on paper by mailing the forms to the IRS, or you can file electronically using tax software or a tax preparer. Electronic filing is faster and reduces errors. Many free tax preparation programs are available through the IRS Free File program if your income is below a certain threshold, or through local nonprofits and community organizations.

When you file, have ready: your Social Security number and your spouse's (if filing jointly), your children's names and Social Security numbers, proof of your earned income (W-2s, 1099s, or business records), and documentation of where your children lived during the year if the IRS questions it later.

What happens after you file

The IRS processes your return and calculates the Additional Child Tax Credit. If you are owed a refund, the IRS will send it to you by mail or direct deposit, depending on how you filed. Processing time varies: if you file electronically, expect a refund within 21 days under normal circumstances. If you file on paper, it takes longer — typically 4 to 6 weeks or more.

You can check the status of your refund using the IRS "Where's My Refund?" tool on the IRS website, available after 24 hours for electronic filers or 4 weeks for paper filers. If there is a problem with your return, the IRS will mail you a notice explaining what is needed.

Common reasons the credit is reduced or denied

The credit is reduced if your earned income is below the threshold for the full amount, or if you have fewer than the maximum number of may have access to children. It is denied entirely if you have no earned income, if your children do not have valid Social Security numbers, or if they do not meet the age or residency requirements.

The credit can also be reduced or denied if the IRS determines that a child does not meet the relationship or residency test, or if another person has already claimed that child as a dependent. If you claimed a child who was not yours to claim, the IRS will disallow the credit and may assess penalties and interest. If you believe the IRS made an error, you can respond to the notice they send you or contact the IRS for assistance.

Frequently Asked Questions

Can I get the Additional Child Tax Credit if I did not work the entire year?

Yes, as long as you have earned income for at least part of the year. The credit is based on your total earned income for the full tax year, even if you only worked a few months. If your earned income is below $2,500, the credit is zero, but you can still file and claim it if you meet all other requirements.

What if my child was born in December — do they count for this year's credit?

Yes. The child must be under age 17 on December 31 of the tax year. A child born on December 31 counts as a may have access to child for that year. A child born on January 1 does not count until the following year.

Can I claim the Additional Child Tax Credit for a grandchild I am raising?

Yes, if the grandchild lives with you for more than half the year and you have legal custody or a court order placing them in your care. The grandchild must also have a valid Social Security number and be under age 17. You must be the only person claiming them as a dependent.

Do I have to file a tax return if my only income is from a job that did not withhold taxes?

You must file a return to claim the Additional Child Tax Credit, even if you have no tax liability. Filing is how you request the refund from the IRS. If your income is below the filing requirement threshold, you are not required to file, but filing allows you to receive the credit.

What if I claimed the wrong number of children on my return?

Contact the IRS or file an amended return using Form 1040-X. If you claimed too many children, you may owe money back. If you claimed too few, you can request an additional refund. The IRS will recalculate your credit based on the correct information.