The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit (CTC). Unlike the nonrefundable part of the CTC, the ACTC can increase your refund even if you owe little or no tax.
This credit is automatically calculated by the software based on the information you enter into your 2025 tax return. To qualify, you must have earned income exceeding $2,500.
👨👩👧 What Is the Additional Child Tax Credit?
The ACTC allows eligible taxpayers to receive a refund even when the full Child Tax Credit cannot be used, typically due to limited tax liability.
✔ Eligibility Requirements
You may qualify for the ACTC if:
- 👶 You have at least one qualifying child
- 📉 Your nonrefundable Child Tax Credit is limited by your tax liability
- 💼 You have earned income above the IRS threshold (minimum $2,500)
📊 How the ACTC Is Calculated
Although specific IRS formulas may vary by tax year, the ACTC generally uses:
-
A percentage of your earned income above the annual threshold
OR - A calculation based on having three or more qualifying children
These calculations are completed using Schedule 8812 (Credits for Qualifying Children and Other Dependents).
Your tax software automatically performs these calculations for you.
📄 How to View Your ACTC in the Software
To review the result of your Additional Child Tax Credit:
- 📁 Select Summary/Print from the left navigation bar
- 🔽 Open the drop‑down menu next to Payments
- 💰 Locate the line labeled Additional Child Tax Credit
This section will display the refundable credit amount included in your refund calculation.