The refundable portion depends on your income and how many children you have

The child tax credit has two parts: a regular credit that reduces what you owe, and a refundable portion that can come back to you as a refund even if you owe no tax. For the 2024 tax year, you can receive up to $1,700 per child as a refund through the Additional Child Tax Credit, which is the refundable piece. The exact amount you receive depends on your earned income and the number of may have access to children.

The refundable credit is calculated differently than the main credit. You earn it at a rate of 15 percent of your earned income above $2,500. So if you earned $15,000, you would calculate it this way: $15,000 minus $2,500 equals $12,500, times 15 percent equals $1,875. However, the refund cannot exceed $1,700 per child, so a single parent with one child would receive $1,700, not $1,875.

If your earned income is $2,500 or less, you do not receive any refundable credit. Earned income includes wages, salaries, and self-employment income, but not investment income, unemployment benefits, or Social Security.

Key Takeaways

  • The refundable child tax credit is capped at $1,700 per may have access to child for 2024, even if your calculation produces a higher number.
  • You must have earned income of more than $2,500 to receive any refundable portion; the credit is 15 percent of income above that threshold.
  • The refundable credit is separate from the main child tax credit, which can reduce your tax bill by up to $2,000 per child.
  • Earned income means wages, salary, or self-employment income—not investment returns, unemployment, or retirement benefits.

How the refundable credit works with the main credit

The child tax credit actually operates in two stages. First, the IRS applies the main credit of up to $2,000 per child against the tax you owe. If that credit is larger than your tax bill, the excess does not automatically come back to you—that is where the refundable portion steps in.

The refundable piece (the Additional Child Tax Credit) is designed to return money to lower-income families. It lets you claim back up to $1,700 per child, but only if you have earned income and only up to the amount your calculation produces. This means a family with three children could theoretically receive up to $5,100 in refunds, but only if their earned income supports that calculation.

Income thresholds and phase-out rules

The refundable credit does not phase out based on your total income the way the main credit does. Instead, it is tied directly to your earned income and the $2,500 threshold. Once you earn more than $2,500, you begin to build refundable credit at 15 percent of the amount above that threshold.

There is no upper income limit where the refundable credit disappears. A family earning $100,000 can still claim it, though the $1,700-per-child cap will likely be the limiting factor at higher incomes. The main child tax credit, by contrast, begins to reduce at $400,000 of income for married couples filing jointly and $200,000 for single filers.

What counts as earned income for this calculation

Earned income is the foundation of the refundable credit calculation. It includes W-2 wages from an employer, net self-employment income, and taxable combat pay if you are military. It does not include interest, dividends, capital gains, rental income, unemployment benefits, Social Security, pension payments, or workers' compensation.

If you are self-employed, your earned income is your net profit after business expenses, not your gross revenue. If you had a loss in your business, your earned income for that year is zero, and you would not receive a refundable credit that year. Spouses filing jointly can combine their earned income, so a couple where one spouse earned $10,000 and the other earned $8,000 would use $18,000 as their combined earned income.

How to claim the refundable credit on your tax return

You claim the refundable credit on IRS Form 1040, Schedule 8812 (Additional Child Tax Credit). This form walks you through the calculation: it subtracts $2,500 from your earned income, multiplies the result by 15 percent, and then caps the total at $1,700 per may have access to child. The form also accounts for the main child tax credit you already claimed, because the refundable portion is only what remains after that.

You must have a valid Social Security number for each child you claim, and the child must be under age 17 at the end of the tax year. If you use tax software, it typically calculates this automatically once you enter your earned income and number of may have access to children. If you file by hand, you will need to work through Schedule 8812 line by line.

Situations where you might receive less than the maximum

Several circumstances can reduce the refundable credit below $1,700 per child. If your earned income is low, the 15 percent calculation may produce a smaller number. For example, if you earned $5,000, your refundable credit would be ($5,000 minus $2,500) times 15 percent, which equals $375 per child—well below the $1,700 cap.

If you already received a large main credit that covered all your tax liability, the refundable portion may be reduced or eliminated depending on how the IRS calculates the interaction between the two. Additionally, if you claimed the Earned Income Tax Credit (EITC), there are rules about how the two credits work together that can affect your final refund amount.

Changes to the child tax credit in recent years

The refundable portion of the child tax credit has shifted over time. In 2021 and 2022, the refundable credit was temporarily increased to $1,600 per child and the income threshold was lowered to $2,500. For 2023 and 2024, it returned to $1,700 per child with the $2,500 threshold. These amounts are set by Congress and can change again in future years.

The main child tax credit itself was increased to $2,000 per child in 2017 and has remained there. However, the refundable portion—the part that comes back to you as a check—has been the subject of ongoing debate and adjustment. It is worth checking the current year's IRS guidance or using current tax software to confirm the exact amounts for the year you are filing.

Frequently Asked Questions

Can I get a refund if I owe no federal income tax?

Yes. The refundable child tax credit is designed specifically for this situation. Even if your tax liability is zero, you can still receive a refund through the Additional Child Tax Credit if you have earned income above $2,500 and may have access to children. This is one of the main ways lower-income families receive money back from the tax system.

What is the difference between the $2,000 credit and the $1,700 refund?

The $2,000 is the main child tax credit, which reduces your tax bill dollar-for-dollar. The $1,700 is the maximum refundable portion—the part that can come back to you as a refund if the main credit is larger than what you owe. You claim both on the same return, and they work together.

If I have three children, can I get $5,100 back?

You can receive up to $5,100 (three children times $1,700), but only if your earned income supports that calculation. If you earned $12,500, your refundable credit would be ($12,500 minus $2,500) times 15 percent times three children, which equals $4,500—less than the maximum.

Does my spouse's income count if we file jointly?

Yes. When you file a joint return, you combine both spouses' earned income for the refundable credit calculation. If one spouse earned $8,000 and the other earned $7,000, you use $15,000 as your combined earned income.

What if my child does not have a Social Security number?

You cannot claim the child tax credit, refundable or otherwise, without a valid Social Security number for the child. An Individual Taxpayer Identification Number (ITIN) does not may have access to for this credit. The child must also be a U.S. citizen, national, or resident alien.