What Is the Additional Child Tax Credit?

The Additional Child Tax Credit (ACTC) is an extra tax credit that allows you to claim and potentially receive a portion of the unused 澳洲幸运5官方开奖结果体彩网:Child Tax Credit as a refund.

The Child Tax Credit can erase some of what you owe the Internal Revenue Service (IRS), but the government keeps any portion that's left over because this credit isn't refundable. The ACTC is used to claim at least a portion of this money as a refund.

How the Additional Child Tax Credit Works

If taxpayers qualify💮 for and claim the ACTC, they can receive a portion of their Child Tax Credit as part of their refund. This requires completing  and filing it with t👍heir Form 1040 tax return.

However, the credit has limits. In the 2024 and 2025 tax years, only $1,700 unused Child Tax Credit money can be transferred to the refundable ACTC. That $1,700 is a significant portion (85%) of the $2,000 maximum Child Tax Credit available in these years. And it's per child, so it increases to $5,100 if you have three children.

You should note that there are income limits for both credits. The $2,000 and $1,700 figures begin to decrease at 澳洲幸运5官方开奖结果体彩网:adjusted gross incomes (AGIs) of $200,000 for single filers or $400,000 for those who are married and file joint returns. You can't claim the ACTC if you exclude foreign-earned income by filing .

Legislative Changes

The 澳洲幸运5官方开奖结果体彩网:Taxpayer Relief Act created the Child Tax Credit in 1997. The 澳洲幸运5官方开奖结果体彩网:Economic 🍸Gro💞wth and Tax Relief Reconciliation Act made a refundable portion available by adding the Additional Child Tax Credit in 2001. This measure was initially intended to be teꦏmporary, but the ACTC has endured.

Then came the 澳洲幸运5官方开奖结果体彩网:Tax Cuts and Jobs Act in 2017. This legislation increased the Child Tax Credit from $1,000 to $2,000. It increased the income requirements for receiving the full credit to $200,000 and $400,000, which still stand in 2025.

The IRS indicated in February 2025 that Puerto Rican residents could qualify for the Additional Child Tax Credit with just one qualifying child rather than three, which used to be the rule. The agency states that tax refunds that include the ACTC can't be issued before mid-February 2025 under current law.

Is Your Family Eligible?

Eligibility for the Additional Child Ta🥂x Credit depends on first claiming the Child Tax Credit and having an excess refund left after eliminating your tax obligation. Qualifying for the Child Tax Credit depends on several factors relating to your dependent child.

The child must be no older than 16 as of the last day of the tax year. They must be a U.S. citizen, national or resident alien, and have a 澳洲幸运5官方开奖结果体彩网:Social Security number. You must claim them as a dependent on your tax return, and they must have lived with you for more than six months out of the tax year. They can't have contributed more than half of their financial support, and they must be related to you somehow, although stepchildren can also qualify as dependents.

Your dependent's Social Security number must be valid for employment and issued before the due date for your tax return. If you 澳洲幸运5官方开奖结果体彩网:requested a filing time extension, that date could be extended to October of that year.

The Bottom Line

The Additional Child Tax Credit (ACTC) won't help significantly high earners because of the $200,000 and $400,000 income phaseout limits. Still, it can give a nice financial boost to other families—particularly those who have several children. The two credits work in tandem to 澳洲幸运5官方开奖结果体彩网:reduce your tax bill with the IRS and provide you with a bit of ca💫sh, ൲too. Fortunately, the rules for claiming them aren't complex.

Don't overlook them at tax time if you have one or more qualifying dependents.