CTC vs. ACTC at a glance
The ACTC isn’t an additional $1,700 on top of the full CTC. It is the refundable portion of the credit.
| Child Tax Credit | Additional Child Tax Credit | |
|---|---|---|
| 2025 maximum | Up to $2,200 per qualifying child | Up to $1,700 per qualifying child |
| 2026 maximum | Up to $2,200 per qualifying child | Up to $1,700 per qualifying child |
| Refundable? | No | Yes, within the refundable limit |
| Minimum earned income | No minimum requirement | At least $2,500 |
Source: Internal Revenue Service (1,2)
How the ACTC is calculated
For many filers, the ACTC is generally limited to 15% of earned income above $2,500, up to $1,700 for each qualifying child. It also can’t exceed the unused portion of the CTC.
For example, suppose you have one qualifying child, $20,000 in earned income, and unused CTC of $1,700 or more remaining:
- $20,000 − $2,500 = $17,500
- $17,500 × 15% = $2,625
While 15% of your remaining earned income is $2,625, the per-child limit maxes the ACTC out at $1,700, so that’s what you would receive.
Note: Families with three or more qualifying children may be eligible for an alternative calculation based on certain Social Security and Medicare taxes.
Who qualifies for the Additional Child Tax Credit?
To qualify, you generally must:
- Have at least $2,500 in earned income.
- Have a qualifying child who is under age 17 at the end of the tax year.
- Meet the relationship, support, dependent, and citizenship or residency tests.
- Have the required Social Security numbers issued by the return due date, including extensions.
| Test | Requirements |
|---|---|
| Relationship | The child must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these. |
| Residency/Citizenship | The child must have lived with you for more than half of the tax year (more than 6 months). |
| Support | The child must not have provided more than half of their own financial support for the year. |
| Dependents | The child must be claimed as a dependent on your federal tax return. |
Source: Internal Revenue Service
Note: The child you’re claiming can’t file a joint return for the year unless the joint return is filed solely to claim a refund of withheld taxes or estimated taxes paid.
Your income also impacts eligibility. The CTC begins to phase out when modified adjusted gross income exceeds $200,000 for most filing statuses or $400,000 for married couples filing jointly. A reduced CTC may also reduce the amount available through the ACTC.
How to claim the ACTC on your return
Use Schedule 8812, Credits for Qualifying Children and Other Dependents, with Form 1040 to calculate and claim the ACTC. You must file a federal return to receive the refundable amount, even if you otherwise aren’t required to file.
Under the Protecting Americans from Tax Hikes Act, the IRS can’t issue refunds that include the ACTC before mid-February. The delay applies to the entire refund, not only the ACTC portion.
