How to Claim the Additional Child Tax Credit on IRS Form 1040

Introduction

The Additional Child Tax Credit (ACTC) helps eligible taxpayers receive a refundable credit if they do
not qualify for the full $2,000 per child Child Tax Credit (CTC). Under IRC § 24(d), taxpayers can claim
up to $1,600 per child as a refundable credit in 2025.

This guide explains who qualifies, how much you can claim, and how to file for the Additional Child
Tax Credit on Form 1040.

Who Qualifies for the Additional Child Tax Credit?

To be eligible for the ACTC, you must:

•  Have a qualifying child under age 17 at the end of 2025.
• Be eligible for the Child Tax Credit (CTC) but unable to claim the full $2,000 due to low tax
  liability.
•  Have earned income of at least $2,500.
•  Meet income limits for phase-out (see below).

2025 Income Limits for the ACTC

How Much Is the Additional Child Tax Credit Worth?

•  Maximum refundable credit: $1,600 per qualifying child.
•  The credit is calculated as 15% of earned income above $2,500.

How to Claim the Additional Child Tax Credit

Step 1: Determine Eligibility

• Confirm your earned income is at least $2,500.
•  Ensure you cannot claim the full $2,000 Child Tax Credit.

Step 2: Gather Required Documents

•  Social Security Numbers for each qualifying child.
• Form W-2 or Schedule C (Form 1040) for earned income proof.

Step 3: Complete IRS Forms

• Form 1040, Line 28 – Enter the ACTC amount.
• Schedule 8812 (Form 1040) – Calculate the credit.

Step 4: File Your Tax Return

• The ACTC is refundable, meaning you can receive a refund even if you have no tax liability.

IRS Forms & Compliance Checklist

•  Form 1040 – Report the ACTC (Line 28)
•  Schedule 8812 (Form 1040) – Required for the credit
• Form W-2, 1099, or Schedule C – Proof of earned income

Conclusion

The Additional Child Tax Credit provides a refundable tax benefit to families who qualify for the
Child Tax Credit but do not receive the full amount. If you meet income requirements and have a
qualifying child, this credit can boost your tax refund.

For expert tax assistance, schedule a consultation with Anshul Goyal, CPA EA FCA, a licensed tax
professional and IRS representative.

Frequently Asked Questions (FAQs)

1. Can I claim the ACTC if I have no earned income?

•  No, you must have at least $2,500 in earned income.

2. Is the ACTC available for dependents over age 17?

•  No, only children under 17 qualify.

3. Can I claim both the Child Tax Credit and the ACTC?

• Yes, if your tax liability is too low to claim the full CTC.

4. Is the ACTC refundable?

•  Yes, up to $1,600 per child can be refunded.

5. What happens if my income is too high for the ACTC?

• If your AGI exceeds the phase-out limit, you cannot claim the credit.

About Our CPA

Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA).
He specializes in child tax credits, IRS compliance, and tax-saving strategies.

Schedule a consultation today with Anshul Goyal, CPA, to maximize your tax benefits.