The refundable portion depends on your income and how many may have access to children you have
The child tax credit is partly refundable and partly non-refundable, which means you can get some of it back as a refund even if you owe no tax. The refundable part is called the additional child tax credit, and for the 2024 tax year, you can receive up to $1,700 per child as a refund. The rest of the credit — up to $1,300 per child — can only reduce the tax you owe.
Whether you receive the full $1,700 refund per child depends on your earned income. If your earned income is less than $2,500, you cannot receive any refundable portion. If your earned income is $2,500 or more, the refundable amount is 15 percent of your earned income above $2,500, up to the $1,700 cap per child.
The total child tax credit for 2024 is $2,000 per may have access to child under age 17. Of that $2,000, up to $1,700 is refundable through the additional child tax credit, and the remaining $300 can only offset tax you owe. This structure means lower-income families can still receive a substantial refund even if they paid little or no income tax during the year.
Key Takeaways
- The additional child tax credit allows you to receive up to $1,700 per child as a refund, even if you owe no tax.
- You must have earned income of at least $2,500 to receive any refundable portion of the credit.
- The refundable amount is 15 percent of earned income above $2,500, capped at $1,700 per child.
- The remaining $300 of the $2,000 child tax credit can only reduce the tax you owe, not create a refund.
How earned income affects your refund amount
Your earned income — wages, salary, self-employment income, and similar earnings — is the threshold that unlocks the refundable portion. If you earned $2,500 or less, you receive no refundable credit, though you may still be able to claim the non-refundable portion if you have tax liability. If you earned $2,500 to $13,333, the refundable amount grows: for every dollar of earned income above $2,500, you can receive 15 cents as a refund, up to $1,700.
Once your earned income reaches approximately $13,333 per child, you hit the $1,700 refundable cap. At that point, earning more does not increase your refund, though it may increase the non-refundable portion you can claim. For example, a parent with one child and $13,333 in earned income receives the full $1,700 refund. A parent with one child and $20,000 in earned income also receives $1,700 — the same amount.
Investment income, rental income, and unemployment benefits do not count as earned income for this calculation. Only wages and self-employment income matter. If you are self-employed, your earned income is your net profit after the self-employment tax deduction.
The difference between refundable and non-refundable portions
A refundable credit can result in a refund to you even if you owe no tax. A non-refundable credit can only reduce the tax you owe to zero; it cannot push your refund higher. The child tax credit is split between the two.
If you owe $800 in tax and claim a $2,000 child tax credit, the non-refundable portion ($300) eliminates your $800 tax bill. The refundable portion ($1,700) then creates a $900 refund. If you owe no tax at all, the non-refundable $300 does nothing, but the refundable $1,700 still generates a refund (assuming your earned income qualifies you for it).
This structure is why the child tax credit is valuable for lower-income families: even households with little or no tax liability can receive a substantial refund through the refundable portion.
Income limits and phase-out rules
The child tax credit begins to phase out — meaning the amount you can claim shrinks — when your modified adjusted gross income (MAGI) exceeds certain thresholds. For 2024, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers and heads of household. For each $1,000 (or fraction thereof) over the threshold, the credit reduces by $50.
The phase-out applies to both the refundable and non-refundable portions equally. If the phase-out reduces your total credit from $2,000 to $1,500, it reduces both the refundable and non-refundable parts proportionally. This means high-income families may receive less than the full $1,700 refundable amount, even if their earned income would otherwise may have access to them.
If your income is below the phase-out threshold, the phase-out does not affect you, and your refundable amount depends only on your earned income level.
How to claim the refundable credit on your tax return
You claim the child tax credit on Form 1040 (the main individual income tax return) and Schedule 8812 (Additional Child Tax Credit). Schedule 8812 is where you calculate how much of the credit is refundable based on your earned income. You must have a valid Social Security number for each child you claim.
If you use tax software, it typically walks you through the calculation automatically. If you file by hand or with a tax professional, they will complete Schedule 8812 to determine your refundable amount. The refundable portion flows to your overall refund or reduces the tax you owe.
You do not need to take any separate action to "unlock" the refundable portion — it is calculated as part of your normal tax return filing. However, you must report the child's Social Security number correctly, and the child must meet the IRS definition of a may have access to child (generally under age 17, a U.S. citizen, and claimed as a dependent on your return).
What happens if your income changes during the year
Your refundable credit is based on your earned income for the entire tax year, not your income at any single point. If you earned $2,000 in the first half of the year and $15,000 in the second half, your total earned income is $17,000, which qualifies you for the full $1,700 refundable amount per child.
If you received advance child tax credit payments during the year (the IRS sent you money monthly), those payments are subtracted from your refundable credit when you file your return. For example, if you received $1,200 in advance payments and your refundable credit is $1,700, you receive an additional $500 refund (or the $500 reduces any tax you owe). If you received more in advance payments than your final refundable credit, you may owe money back when you file.
Frequently Asked Questions
Can I get the full $1,700 refund if I did not work the entire year?
Only if your earned income for the year totals at least $2,500. If you earned $2,500 to $13,333, your refundable amount is 15 percent of income above $2,500. If you earned less than $2,500, you receive no refundable portion, though you may still claim the non-refundable $300 per child if you have tax liability.
Does my spouse's income count toward the $2,500 threshold?
If you file jointly, yes — your combined earned income counts. If you file separately, only your own earned income counts. Filing jointly typically results in a higher refundable credit for couples where one spouse has little or no earned income.
What if I have more than one child?
The $1,700 refundable cap applies per child. If you have two children and earned income of $13,333, you can receive up to $3,400 in refundable credit ($1,700 per child). The $2,500 earned income threshold applies to your total earned income, not per child.
Do I lose the refundable credit if my income is too high?
Not because of earned income alone. The refundable amount is capped at $1,700 per child regardless of how much you earn. However, if your modified adjusted gross income exceeds the phase-out threshold ($400,000 for married filing jointly, $200,000 for single), the entire credit — including the refundable portion — begins to shrink by $50 for each $1,000 over the limit.
What if I received advance payments but my income changed?
When you file your return, the IRS recalculates your refundable credit based on your actual year-end income and subtracts any advance payments you received. If you received more than you were may have access to to, you repay the difference. If you received less, you get the additional amount as a refund.