Guide to the Additional Child Tax Credit for Tax Year 2025

The Additional Child Tax Credit permits eligible taxpayers to collect a refundable portion of the Child Tax Credit even if they owe little or no federal income tax. For the 2025 tax year, filed in 2026, the refundable limit reaches up to $1,700 per qualifying child within a total credit of up to $2,200.

This credit is not applied automatically, meaning taxpayers must meet eligibility criteria and claim it on a federal return. The calculation is based on earned income rather than federal income tax owed, generally allowing a refundable amount of 15% of earned income above $2,500 up to the per-child limit.

Qualifying children must meet specific criteria, including being under age 17 at the close of the tax year, possessing a valid Social Security number issued before the return's due date, and meeting residency and support tests. Both the taxpayer and the child must have valid Social Security numbers, and specific filing forms like Schedule 8812 are required.

The IRS notes that refunds for returns claiming the Additional Child Tax Credit cannot be issued before mid-February. Taxpayers are also advised to maintain supporting records and avoid misleading claims promoted by third parties.