April 15th, 2025 marks the tax filing deadline. If you haven’t filed yet, get on it! Not only is it important to make the deadline, but you could possibly receive an extra $1,700 on your refund.
Known as the Additional Child Tax Credit (ACTC), this benefit gives relief to eligible families to offset the expenses of children. ACTC differs from the Child Tax Credit (CTC), which is non-refundable.
Qualifying families under CTC can receive up to $2,000 per child as a tax credit. However, ACTC is the refundable portion of CTC, allowing families to receive up to $1,700 per child of the $2,000 CTC. This is calculated as Refund=15%×(Earned Income−2,500). You can still claim the benefit—here’s how:
Who qualifies for the extra $1,700?
Whether you qualify for ACTC depends on your income requirements and child.
According to the IRS, the child must:
- Be under 17 at the end of the tax year
- Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these
- Not have financially supported themselves for more than half of the tax year
- Be claimed on your return as a dependent
- Have lived with you for more than half of the tax year
- Not file a joint return for the tax year
- Be a U.S. citizen, national or resident alien
- Have a SSN valid for employment and issued before the deadline of your tax return
Eligible families must have earned an income of $2,500 or more during the tax year to claim ACTC.
Read other important restrictions and thresholds here on the IRS website.
How to claim ACTC
To determine whether you qualify, go to the Child Tax Credit Worksheet on your Form 1040. Qualifying applicants will be directed to fill out Schedule 8812 to get an ACTC claim.
Anything else to know?
By 2026, ACTC claims could significantly decrease to $1,000 per child, unless present-day rulings are extended. Thus, you should maximize on the current provisions in the 2024 and 2025 tax year while you still can.