Additional Child Tax Credit 2025: When will the IRS send out ACTC refunds in March?

The Additional Child Tax Credit (ACTC) is a non-refundable tax credit designed to reduce your tax liability dollar for dollar. In certain cases, eligible taxpayers may also qualify for a partial refund of this credit.

To claim the ACTC, you must first complete the standard Child Tax Credit Worksheet, which is included in the instructions for Form 1040 or 1040-SR. If eligible for the additional credit, you will need to fill out Schedule 8812 to claim the refund.

The ACTC can lower your tax bill to zero, and by 2025, taxpayers may receive up to $1,600 of the $2,000 per qualifying child as a refundable amount.

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When will ACTC Refunds be issued?

The IRS is legally required to hold ACTC refunds until mid-February. This delay applies to the entire refund, not just the portion related to the tax credit. If you filed your return early in the tax season, you can expect your refund by March 3, provided that:

1. You filed electronically,
2. Chose direct deposit, and
3. The IRS did not find any errors in your return.

Who qualifies for the Additional Child Tax Credit?

To be eligible for the ACTC, you must meet specific criteria, including:

• The child’s age (must be under 17),
• The relationship to the taxpayer, and
• Income eligibility based on IRS thresholds.

Taxpayers with qualifying dependents under 17 years old can claim up to $2,000 in non-refundable tax credits, with a portion being refundable. Since the ACTC functions as a dollar-for-dollar tax reduction, it directly impacts the amount owed to the IRS.

To track your ACTC refund status, use the ‘Where’s My Refund?’ tool on the IRS website. Typically, refunds are issued within 21 days of filing, but processing times may vary.