Federal credits
Child tax credit and additional child tax credit
The child tax credit has two parts: one lowers your income tax, the other is paid out when the tax is too small. Families with low wages often receive only the second, so the split matters.
Child tax credit and additional child tax credit
Child tax credit you can use, 2025
$3,263
| Credit after the income phase-out | $4,400 |
| Federal income tax before credits (estimate) | $38 |
| Part that lowers your tax | $38 |
| Additional child tax credit (refund) | $3,225 |
| Not usable | $1,137 |
For tax year 2025, the 2025 reconciliation law, Public Law 119-21, set the child tax credit at $2,200 for each qualifying child under 17, and Rev. Proc. 2025-32 keeps it at $2,200 for 2026. The credit first reduces your federal income tax. The part that remains can be refunded as the additional child tax credit, up to $1,700 per child for both years, but only up to 15% of your earned income above $2,500. A single parent of two with $24,000 of wages owes no income tax after the standard deduction, so receives no nonrefundable credit and an additional credit of $3,225. The credit falls by $50 for each $1,000 of modified AGI above $200,000, or $400,000 on a joint return. Each child needs a Social Security number valid for work, and so does at least one parent. A $500 credit for other dependents applies to older children and relatives.
The refundable part of the child tax credit
Additional child tax credit 2025
$2,325
| Lowers your income tax | $0 |
| Full credit | $4,400 |
| Not usable | $2,075 |
15% of earned income above $2,500, up to $1,700 a child. Head of household.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
Two children, head of household, tax year 2025
| Earned income | Against income tax | Refundable (ACTC) | Total |
|---|---|---|---|
| $5,000 | $0 | $375 | $375 |
| $10,000 | $0 | $1,125 | $1,125 |
| $15,000 | $0 | $1,875 | $1,875 |
| $20,000 | $0 | $2,625 | $2,625 |
| $30,000 | $638 | $3,400 | $4,038 |
| $40,000 | $1,638 | $2,762 | $4,400 |
| $60,000 | $4,025 | $375 | $4,400 |
| $80,000 | $4,400 | $0 | $4,400 |
The rules of Schedule 8812
A qualifying child for this credit is under 17 at the end of the year, is your son, daughter, stepchild, foster child, sibling or a descendant of one of them, lived with you more than half the year, did not provide over half of their own support, is claimed as your dependent and is a citizen, national or resident of the United States. The Schedule 8812 instructions have the worksheets. The law is section 24 of the Internal Revenue Code, as amended by section 70104 of Public Law 119-21.
Families with three or more qualifying children may compute the refundable part a second way, using the Social Security and Medicare taxes they paid minus their earned income credit, and keep the larger. That case rarely changes the result at low wages and is not computed here.
How the refundable part interacts with the EITC
The two credits add up. A single parent of two with $20,000 of wages in 2025 receives $7,152 of earned income credit and $2,625 of additional child tax credit, $9,777 in all, before any state credit. As wages rise, the earned income credit falls while the child tax credit rises, until the full $4,400 is covered by income tax, a little above $63,000 of wages for that family. The main calculator shows both lines for your household and state.
Refunds and timing
A return that claims the additional child tax credit is held like one that claims the earned income credit: no refund before mid-February. The whole refund waits, including the part that does not come from these credits. See the refund timing page.