What the Additional Child Tax Credit Is

The Additional Child Tax Credit (also called the Refundable Child Tax Credit) is a tax credit that can put money back in your pocket even if you owe 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 IRS sends you money instead of you sending money to them.

The credit is tied to the number of may have access to children under age 17 on your tax return. The amount varies by year and by your income level. You claim it on your federal tax return using IRS Form 1040 and Schedule 8812.

Key Takeaways

  • The Additional Child Tax Credit can give you a refund even if you paid no federal income tax during the year.
  • You must have earned income (from a job, self-employment, or certain other sources) to claim this credit — you cannot claim it on investment income alone.
  • The maximum credit per child and the income limits change each year, so the amount you receive depends on when you file and your household income.
  • You claim the credit on your federal tax return using Form 1040 and Schedule 8812, filed with the IRS by the annual deadline.
  • If you received advance payments of the Child Tax Credit during the year, those payments reduce the amount of Additional Child Tax Credit you can claim.

Earned Income Requirement

To claim the Additional Child Tax Credit, you must have earned income for the tax year. Earned income includes wages from a job, net profit from self-employment, and certain other sources like military housing allowances or taxable scholarship amounts. Investment income — such as interest, dividends, or capital gains — does not count.

The credit is limited to a percentage of your earned income that exceeds a threshold amount. This means if your earned income is very low or zero, you may not be able to claim the full credit amount, or any credit at all. The exact percentage and threshold change each year and are set by the IRS.

Income Limits and Credit Amounts

The Additional Child Tax Credit has income limits and maximum amounts that shift annually. For example, in recent years the credit has been up to $1,700 per may have access to child, but this figure changes. Your income determines whether you can claim the full amount, a reduced amount, or nothing.

Because these figures change yearly, you should check the IRS website or your tax software for the current year's limits before you file. If your income is above the phase-out range, you may not receive any Additional Child Tax Credit, though you might still claim the regular Child Tax Credit if you meet other requirements.

How to Claim the Credit on Your Tax Return

You claim the Additional Child Tax Credit by filing Form 1040 (the main federal income tax form) along with Schedule 8812. Schedule 8812 is where you calculate how much of the credit you can claim based on your earned income and the number of may have access to children.

If you use tax software, the program typically walks you through the questions needed to fill out Schedule 8812 automatically. If you file by hand or with a tax preparer, they will complete the form based on information you provide about your children and income. You file these forms with the IRS by the annual tax deadline, usually April 15.

Advance Payments and How They Affect Your Claim

In some years, the IRS has sent advance payments of the Child Tax Credit to families during the tax year rather than waiting until tax time. If you received these advance payments, the amount you claimed during the year reduces the Additional Child Tax Credit you can claim when you file your return.

For example, if you received $1,200 in advance payments and your total credit for the year is $1,700, you can only claim $500 as the Additional Child Tax Credit on your return. You will need to report the advance payments you received on your tax return so the IRS can calculate the correct final amount.

may have access to Children and Documentation

A may have access to child for this credit must be under age 17 at the end of the tax year, have a valid Social Security number, live with you for more than half the year, and be your son, daughter, stepchild, foster child, sibling, or descendant of any of these. You do not need to submit birth certificates or other documents with your return, but you should keep them in your records in case the IRS asks for proof.

If you claim a child who does not meet these requirements, the IRS may deny the credit and ask you to repay any refund you received. The IRS sometimes matches Social Security numbers on tax returns against its records, so using an incorrect number or claiming a child who is not yours can trigger an audit.

When You Might Not Receive the Full Credit

Several situations can reduce or eliminate the Additional Child Tax Credit. If your earned income is below the threshold for the year, you receive a smaller credit or none at all. If your income exceeds the phase-out range, the credit phases out completely. If you received advance Child Tax Credit payments during the year, those reduce your refund.

Additionally, if you are claimed as a dependent on someone else's tax return, you cannot claim the Additional Child Tax Credit yourself. Married couples filing separately also face restrictions — generally, only one spouse can claim the credit if they file separately, and the rules are complex.

Frequently Asked Questions

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

No. You must have earned income to claim this credit. If you had no wages or self-employment income, you cannot claim the Additional Child Tax Credit, even if you have may have access to children. Investment income, unemployment benefits, or Social Security do not count as earned income for this purpose.

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

The regular Child Tax Credit reduces the tax you owe. The Additional Child Tax Credit is the refundable portion — it can give you money back even if you owe no tax. You do not claim them separately; the IRS calculates both on Schedule 8812 and determines how much of your total credit is refundable based on your earned income.

Do I need to report advance Child Tax Credit payments when I file?

Yes. If you received advance payments during the year, you will receive a letter from the IRS showing the amount. You must report this on your tax return so the IRS can reconcile it against your actual credit for the year. If you received more than you were may have access to to, you may owe money back; if you received less, you get the difference as a refund.

What happens if I claim a child who is not mine?

The IRS will likely deny the credit and ask you to repay any refund you received. The agency matches Social Security numbers on returns against its records. Claiming a child fraudulently can result in penalties, interest, and potential criminal charges if the IRS determines it was intentional.

Can I claim the Additional Child Tax Credit if I file my taxes late?

You can still claim the credit if you file late, but you must file within three years of the original deadline to receive a refund. If you file after three years, the IRS will not refund any money owed to you, though you may still reduce any tax you owe for that year.