Is the child tax credit refundable?

The short answer

The child tax credit is not fully refundable, but part of it is. Publication 17 for 2025 explains the structure: the child tax credit (CTC) is worth as much as $2,200 for each child who qualifies you for it. The additional child tax credit (ACTC) is a credit you may be able to take if you are not able to claim the full amount of the CTC, and its maximum is $1,700 for each qualifying child. So of each $2,200 credit, up to $1,700 can reach you as a refund even when you owe no tax, and the remaining $500 can only offset tax you actually owe.

Two layers produce the result. The nonrefundable CTC reduces your income tax, but not below zero. If any credit is left unused, the ACTC lets you receive some of it in cash, bounded by two limits: $1,700 per child and a formula tied to your earned income.

The earned income formula

The Schedule 8812 instructions for 2025 reproduce the formula in their Credit Limit Worksheet B: take your earned income, and if it is more than $2,500, subtract $2,500 and multiply the result by 15%. The refundable amount cannot exceed that figure or the $1,700-per-child cap, whichever is smaller, and of course it cannot exceed the credit you could not use against tax. With no earned income the formula gives $0, and earned income itself is figured on the Earned Income Worksheet in the Schedule 8812 instructions. Credit Limit Worksheet B is the version printed there for filers who also claim certain other credits, so treat the estimator as a close estimate and let Schedule 8812 decide the final number. Families with three or more qualifying children have an alternative test based on Social Security and Medicare taxes; the Schedule 8812 instructions describe it, and this page does not model it.

Who qualifies in the first place

A child qualifies you for the CTC only if all of these are true. The child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them such as a grandchild, niece, or nephew. The child was under age 17 at the end of 2025. The child did not provide over half of his or her own support. The child lived with you for more than half of 2025, with exceptions for temporary absences and certain special cases. The child is claimed as a dependent on your return, does not file a joint return except to claim a refund of withheld tax, and was a U.S. citizen, national or resident alien. Pub. 17’s example is a child who turned 17 on December 30, 2025: the child is not under 17 at year end, so no CTC or ACTC. That child may count for the credit for other dependents instead.

Each child must also have the required SSN, valid for employment and issued before the due date of your return, including extensions. If you or a joint-filing spouse have no SSN issued by then, you cannot claim the CTC or ACTC on an original or amended 2025 return. Only one spouse on a joint return needs an SSN.

Worked examples

Two children, enough tax. You have two qualifying children, $1,800 of tax before the credit and $40,000 of earned income. The CTC is 2 × $2,200 = $4,400. Your tax absorbs $1,800, leaving $2,600 unused. The 15% formula gives 0.15 × ($40,000 − $2,500) = $5,625, and the per-child cap is 2 × $1,700 = $3,400. The smallest of $2,600, $5,625 and $3,400 is $2,600, so the ACTC is $2,600 and the total benefit is the full $4,400.

One child, little income. You have one child, no tax before credits and $10,000 of earned income. The CTC is $2,200, all of it unused. The formula gives 0.15 × $7,500 = $1,125, which is below the $1,700 cap, so you receive $1,125. The other $1,075 is lost, because nonrefundable credit cannot create a refund and the formula limits the refundable part. The estimator above runs both cases.

One child, small tax. $500 of tax and $20,000 of earned income. Tax absorbs $500, leaving $1,700 unused; the formula allows $2,625 and the cap is $1,700, so you receive $1,700 on top of the $500 tax offset: $2,200 in all.

Restrictions you should know

The ODC cannot be used to figure the ACTC; only your CTC can be. If you claim the ODC but not the CTC, you cannot claim the ACTC. If you file Form 2555 for foreign earned income you cannot claim the ACTC. The credits phase down when modified AGI is over $400,000 on a joint return or $200,000 otherwise; this estimator ignores that, so do not use it above those levels without the Schedule 8812 worksheet.

Timing matters too. Pub. 17 warns that the IRS cannot issue refunds before mid-February 2026 for returns that properly claim the ACTC, and that applies to the entire refund, not just the ACTC portion. If a previous CTC, ACTC or ODC claim was denied or reduced for a reason other than a math or clerical error, you must attach Form 8862. Erroneous claims due to reckless or intentional disregard can bar you from these credits for 2 years, and fraud for 10.

How to claim it

File Schedule 8812 (Form 1040) with your return and enter each child’s required SSN in row (3) of the Dependents section, checking the “Child tax credit” box in row (7). Do not check both the CTC box and the ODC box for the same person. For a rough number before you file, compare this estimator with the child tax credit calculator, and see whether the earned income credit adds to your refund. The federal income tax calculator gives you the tax figure to enter above.

Sources

• IRS Publication 17, Your Federal Income Tax (2025): Chapter 14, Child Tax Credit and Credit for Other Dependents: What's New; Child Tax Credit (CTC); Additional Child Tax Credit (ACTC); Taxpayer Identification Number Requirements; Improper Claims. Read November 2, 2026.
• IRS Instructions for Schedule 8812 (Form 1040) (2025): Reminders (ACTC amount); Credit Limit Worksheet B (15% of earned income over $2,500). Read November 2, 2026.

Edition read: Publication 17 (2025), Your Federal Income Tax, for use in preparing 2025 returns. Dollar limits and dates are for the 2025 tax year unless the text says otherwise; check the current publication and form instructions for your tax year. This page summarizes the publication and does not replace it.