The Additional Child Tax Credit is a refund you may receive if you have children and your tax bill is lower than the credit amount

The Additional Child Tax Credit (also called the Refundable Child Tax Credit) is the part of the child tax credit that comes back to you as a refund, even if you owe no federal income tax. The regular child tax credit reduces the tax you owe. The additional credit goes further: if the credit is larger than your tax bill, the IRS sends you the difference as a refund check or direct deposit.

This matters because many working families with children end up owing little or no tax after deductions and other credits. Without the additional credit, they would lose the benefit of the child tax credit entirely. With it, they get money back.

Key Takeaways

  • The additional child tax credit is a refund of up to $1,700 per child (the amount changes yearly) if your child tax credit exceeds what you owe in taxes.
  • You must have earned income — wages, self-employment income, or certain other earnings — to claim it; investment income alone does not count.
  • You report it on Form 8812 (Additional Child Tax Credit) when you file your tax return with the IRS.
  • The amount you receive depends on your earned income and the number of may have access to children, and it phases in at a rate set by the IRS each year.

How much you can receive and how it is calculated

The maximum additional child tax credit per child changes each tax year. For the 2023 tax year (filed in 2024), the maximum was $1,700 per may have access to child. For 2024 (filed in 2025), it is $1,800 per child. The IRS adjusts these amounts annually for inflation.

The credit does not pay the full amount to everyone. Instead, it phases in based on your earned income. If your earned income is below a certain threshold (which also changes yearly), you receive 15 percent of the amount your earned income exceeds $2,500. For example, if your 2024 earned income is $5,000, you would calculate 15 percent of $2,500 ($5,000 minus $2,500), which equals $375. That $375 is compared to your full child tax credit; you receive whichever is smaller.

The credit is limited to the amount of your child tax credit that exceeds your tax liability. If you owe $500 in taxes and your child tax credit is $2,000, the additional credit would be $1,500 (the $2,000 credit minus the $500 you owe). If you owe $0 and your credit is $2,000, you receive up to $1,800 per child (the 2024 maximum), depending on your earned income.

Who can claim the additional child tax credit

You must meet three conditions: you must have a may have access to child, you must have earned income, and you must be a U.S. citizen, national, or resident alien with a valid Social Security number.

A may have access to child is your son, daughter, stepchild, foster child, sibling, or descendant of any of these, who is under age 17 at the end of the tax year, has a valid Social Security number, lived with you for more than half the year, and is a U.S. citizen, national, or resident alien. The child cannot be claimed as a dependent by anyone else.

Earned income includes wages from a job, net self-employment income, and certain other sources like military combat pay that you elect to include. It does not include unemployment benefits, Social Security, pensions, investment income, or rental income. You must have at least $1 of earned income to claim the credit.

How to report the additional child tax credit on your tax return

You report the additional child tax credit using Form 8812, which you file with your Form 1040 (your main tax return). The form walks you through the calculation: it asks for your earned income, the number of may have access to children, and your tax liability. It then calculates the amount you can claim.

If you use tax software, the software typically asks you questions about your children and income, and it fills out Form 8812 for you. If you file by hand or with a tax preparer, you or your preparer will complete the form and attach it to your return.

You must file a tax return to receive the additional child tax credit, even if your income is below the filing requirement. The IRS will not send you the credit without a return on file.

The difference between the child tax credit and the additional child tax credit

The child tax credit is $2,000 per may have access to child (as of 2024; this amount can change). It reduces your federal income tax bill dollar for dollar. If you owe $3,000 in taxes and claim two children, your $4,000 credit reduces your bill to $0.

The additional child tax credit is the refundable portion. It applies only to the part of your credit that exceeds your tax bill. Using the same example: your $4,000 credit wipes out your $3,000 bill, leaving $1,000 of unused credit. The additional credit lets you receive that $1,000 as a refund (subject to the earned income limit and the annual maximum per child).

Not all of your unused credit becomes a refund. The additional credit is capped at $1,800 per child for 2024 and is limited by your earned income. If you have little or no earned income, you may not receive any additional credit even if your child tax credit is large.

Income limits and phase-out rules

There is no income ceiling that disqualifies you from the additional child tax credit. However, the amount you receive phases in based on earned income. The phase-in begins at $2,500 of earned income (this threshold does not change year to year). For every dollar of earned income above $2,500, you can claim 15 percent toward the credit, up to the annual maximum per child.

This means a family with $10,000 in earned income and one may have access to child would calculate 15 percent of $7,500 ($10,000 minus $2,500), which equals $1,125. That $1,125 is compared to their child tax credit and tax liability to determine the final refund.

High-income families may also face a reduction in their child tax credit (not the additional credit specifically, but the base credit). The child tax credit begins to phase out at $400,000 of modified adjusted gross income for married couples filing jointly and $200,000 for single filers. This phase-out does not directly affect the additional credit calculation, but it reduces the total credit available, which in turn affects how much additional credit you can claim.

Frequently Asked Questions

Can I get the additional child tax credit if I did not work all year?

Yes, as long as you had some earned income during the year. You do not need to work the full year. The credit is based on your total earned income for the year, so even a few months of wages or self-employment income counts. If you earned $3,000 total, you would calculate 15 percent of $500 ($3,000 minus $2,500), which equals $75 toward the credit.

What if I have more children than I can claim on my return?

You can only claim the additional child tax credit for children who meet the may have access to child definition and whom you claim as dependents on your return. If you and another person (such as a co-parent) both claim the same child, only one of you can claim the credit. You must agree on who claims it, or the IRS will disallow it for both of you.

Do I have to file a tax return to get the additional child tax credit?

Yes. The IRS does not send the additional credit without a filed return. Even if your income is below the threshold where you normally have to file, you must file a return to receive this refund. Filing is free through IRS Free File or through a tax preparer.

What happens if I claimed the child tax credit but did not know about the additional credit?

You can file an amended return (Form 1040-X) for prior years, usually going back three years from the original due date. If you filed without claiming the additional credit and you were may have access to to it, an amended return can recover that refund. A tax preparer or the IRS can help you determine whether you are may be able to access for prior-year claims.

Does the additional child tax credit affect other benefits I receive?

The additional child tax credit is not counted as income for purposes of means-tested programs like SNAP, Medicaid, or housing assistance. It does not reduce your benefits. However, it may affect your income for the following year if you report it as part of your household income when you recertify for those programs.