The Additional Child Tax Credit (ACTC) provides much-needed financial relief for millions of families across the U.S. Around 48 million taxpayers qualify for this credit, which helps offset child-related expenses by offering a refundable tax benefit.
If you’re eligible, you could receive up to $1,600 per child as a refund in 2025.
Wondering when you’ll receive your payment? Let’s break it all down.
When Will ACTC Refunds Be Paid?
The IRS is legally required to hold all ACTC refunds until mid-February, meaning early filers won’t receive their money right away. If you filed early and meet the following conditions, expect your refund by March 3, 2025:
- You filed your tax return online
- You opted for direct deposit
- Your return was error-free
To track your refund, use the “Where’s My Refund” tool on the IRS website. Most early filers should see updates by February 22, 2025, with refunds issued within 21 days of filing in most cases.
How Much Can You Claim?
The ACTC is tied to the Child Tax Credit (CTC), which provides up to $2,000 per child. If your tax bill is reduced to zero, you may receive a refundable credit of up to $1,600 per child in both 2024 and 2025.
Here’s a quick breakdown:
| Tax Year | Maximum Child Tax Credit | Maximum Refundable ACTC |
|---|---|---|
| 2024 | $2,000 per child | $1,600 per child |
| 2025 | $2,000 per child | $1,600 per child |
This refund can be a lifeline for families dealing with rising costs, as it reduces the tax burden and often provides extra money back.
ACTC Eligibility Requirements
To claim the Additional Child Tax Credit, you must meet specific criteria. Here’s what qualifies you:
- Your child must be under 17 years old at the end of the tax year.
- They must be your dependent and live with you for more than half the year.
- The child must have a valid Social Security Number (SSN) issued before the tax return due date.
- Your earned income must be at least $2,500 to qualify for the refundable portion.
- Your Adjusted Gross Income (AGI) must not exceed:
- $200,000 for single filers
- $400,000 for married couples filing jointly
If you meet these conditions, you can claim the ACTC when filing your tax return.
How to Claim the ACTC
Filing for the ACTC is simple, but it requires additional paperwork. Here’s what you need to do:
- Complete Form 1040 or 1040-SR with your tax return.
- Fill out Schedule 8812, which calculates the refundable portion of the credit.
- File electronically to speed up processing and avoid errors.
If you qualify, the IRS will automatically include your ACTC refund in your total refund amount.
The Additional Child Tax Credit is a crucial benefit that helps parents and guardians ease financial stress.
While refunds are delayed slightly, filing early and opting for direct deposit ensures you get your money as soon as possible. Stay updated with the IRS refund tracking tool and check your status regularly.
