$1,700 ACTC Refund Coming in 2025 – How to Claim It, Check Status, and Eligibility Criteria

The Additional Child Tax Credit (ACTC) is a valuable financial benefit for families raising children, especially during times of rising costs. For the 2025 tax year, eligible households can receive up to $1,700 per qualifying child. Whether you’re a parent trying to balance the household budget or a tax preparer supporting clients, knowing how the ACTC works is key to getting the most out of your refund.

In this guide, we’ll walk you through everything you need to know, from eligibility to filing, and how to track your refund.

Overview

Here’s a quick breakdown of the 2025 ACTC refund:

Families who qualify can receive this refundable credit even if they owe no taxes, offering critical support during tax season.

What is ACTC?

The Additional Child Tax Credit is a refundable portion of the broader Child Tax Credit. While the regular Child Tax Credit reduces tax liability, the ACTC gives families with low or no tax liability a cash refund. It’s especially important for households with limited income who may otherwise miss out on tax benefits.

For 2025, each eligible child can bring in up to $1,700 as a refund, making a real difference in helping cover essential expenses like food, clothing, or childcare.

Eligibility

To receive the ACTC in 2025, you need to meet several specific criteria.

Qualifying Child

• Must be under age 17 at the end of the tax year
• Can be a biological child, stepchild, foster child, or a qualifying descendant like a grandchild or niece
• Must have lived with you for more than half of the year
• Cannot have provided more than half of their own financial support
• Must be a U.S. citizen, national, or resident alien with a valid Social Security Number

Income Requirements

• Earned income must be more than $2,500
• The refundable credit is calculated as 15 percent of the earned income above $2,500
• Refund is capped at $1,700 per child

Income Limits for Full Credit

• Credit starts phasing out at $200,000 for single filers
• For married couples filing jointly, the phase-out begins at $400,000

These limits ensure the credit targets families most in need of financial support.

How to Claim

Here’s a step-by-step guide to filing for the ACTC refund:

Step 1

• Use IRS Form 1040 (or 1040-SR if you’re a senior)
• Attach Schedule 8812 to calculate and claim the ACTC
• Double-check your entries to avoid errors and delays

Step 2

Make sure each child’s Social Security Number and name exactly match IRS records. Errors in this section are a common reason for delays.

Step 3

If your earned income is $30,000, for example:

($30,000 – $2,500) × 15% = $4,125
But since the ACTC is capped at $1,700 per child, that’s the maximum refund you can receive per qualifying child.

Step 4

• E-filing is the fastest and most reliable method
• Paper returns are accepted but often take longer to process

Step 5

This is the quickest way to get your refund. Be sure to double-check your bank account details before submitting your return.

Refund Tracking

Due to the PATH Act, ACTC refunds will not be released before mid-February 2025. This law helps the IRS reduce fraud by verifying income and eligibility.

How to Track Your Refund

• Visit the IRS “Where’s My Refund?” tool online
• Enter your Social Security Number, filing status, and expected refund amount
• Refund info is available 24 hours after e-filing or 4 weeks after mailing

Stay Notified

Sign up for email or text alerts for refund status updates. If you suspect a delay beyond the typical processing time, you can contact the IRS directly for assistance.

FAQs