Chapter 14 of IRS Publication 17 explains the three family credits: the child tax credit (CTC), its refundable part, the additional child tax credit (ACTC), and the credit for other dependents (ODC). It is short because Schedule 8812 and its instructions hold the worksheets, and Pub 972 is no longer revised. In the 2025 edition the chapter covers printed pages 108 to 110, and the 2023 and 2024 editions have the same chapter on pages 109 to 111. It touches Schedule 8812, Form 8862, Form 2555 and the Dependents section of Form 1040. Neighbours: chapter 3 on who is a dependent and chapter 13. These are unofficial study notes in our own words; the IRS publication controls.
Key terms
| Term | Meaning in one line |
|---|---|
| Required SSN | An SSN valid for employment, issued before the return's due date (extensions included) |
| ITIN / ATIN | Individual taxpayer identification number; adoption taxpayer identification number |
| Modified AGI | Schedule 8812, line 3: AGI plus certain excluded foreign and territory income |
| Unused CTC | The part of the CTC your tax cannot absorb |
| Form 8862 | The form that proves eligibility after a credit was denied |
The three credits at a glance (2025)
| Credit | Amount | Refundable? | Who it covers |
|---|---|---|---|
| CTC | $2,200 per child | No | Qualifying child under 17 with the required SSN |
| ACTC | Up to $1,700 per child | Yes | The unused part of the CTC |
| ODC | $500 per dependent | No | Other dependents, such as a child aged 17 or older |
Qualifying child for the CTC
All seven must be true (all years):
- The child is your son, daughter, stepchild, foster child, sibling, step or half sibling, or a descendant of one (grandchild, niece, nephew).
- The child is under 17 on December 31.
- The child did not provide over half of their own support.
- The child lived with you over half the year. Birth, death, temporary absences, kidnapping and divorced-parent rules have exceptions (see chapter 3).
- You claim the child as a dependent.
- The child does not file a joint return, except only to claim a refund.
- The child is a U.S. citizen, national or resident alien.
A child who turns 17 on December 30 fails test 2 and may count for the ODC instead.
SSN and tax number rules by year
- Child (CTC and ACTC), all years: an SSN valid for employment, issued before the due date including extensions. A child born and died in the year with no SSN needs birth, death or hospital records showing a live birth.
- Taxpayer, 2023 and 2024: an SSN or ITIN issued by the due date.
- Taxpayer, 2025: a valid SSN. On a joint return one spouse needs it, and the other may hold an ITIN issued by the due date. 2026 planning rule, Pub 17 (2026) not yet published: the same.
- ODC, all years: the taxpayer needs an SSN or ITIN, and the dependent needs an SSN, ITIN or ATIN, all issued by the due date. An ITIN applied for on time and later issued counts as timely. The 2025 What's New lists this as new, but the 2023 and 2024 text already said it.
- Card legends: a card marked "Not Valid for Employment" should be replaced once the child becomes a citizen or permanent resident; one marked "Valid for Work Only With DHS Authorization" counts only while that authorization is valid.
A child who lacks the required SSN can still count for the ODC if another tax number was issued in time. See our ITIN guide.
Credit for other dependents
A person qualifies if you claim them as a dependent, you cannot use them for the CTC or ACTC, they are a U.S. citizen, national or resident alien, and they hold a timely tax number. The same person cannot be used for both credits. Only the CTC feeds the ACTC; claiming just the ODC leaves no ACTC.
Limits: income and tax
- Income limit: the credits shrink when modified AGI passes $200,000 ($400,000 joint). Reduce by 5% of the excess, with the excess rounded up to the next $1,000 (so $50 per $1,000 or part).
- Tax limit: the CTC and ODC cannot exceed your tax after certain other credits (Credit Limit Worksheet A). The ACTC picks up unused CTC.
The additional child tax credit
The ACTC is the smallest of three figures: unused CTC, the per-child cap times qualifying children with the required SSN, and 15% of earned income over $2,500. Families whose cap total reaches $5,100 (three children at $1,700; $4,800 for 2023) may also use a payroll tax test (Schedule 8812, Part II-B) and take whichever result is larger. Filing Form 2555 blocks the ACTC. Bona fide Puerto Rico residents no longer need three children. The IRS cannot issue refunds before mid-February on returns that properly claim the ACTC, and the hold covers the entire refund. Our child tax credit guide gives a plain-English view.
Claiming and improper claims
File Schedule 8812. On Form 1040 enter each dependent's number and check the CTC or ODC box, never both. A reckless or intentional error bars all three credits for 2 years, and fraud for 10 years. Attach Form 8862 if a credit was denied or reduced (other than by a math or clerical error) for a year after 2015, unless an exception applies. See improper credit claims.
By tax year: 2023, 2024, 2025 and 2026
| Item | 2023 | 2024 | 2025 | 2026 (planning) |
|---|---|---|---|---|
| CTC per child | $2,000 | $2,000 | $2,200 | $2,200 |
| ACTC cap per child | $1,600 | $1,700 | $1,700 | $1,700 |
| ODC | $500 | $500 | $500 | $500 |
| Phase-out start, joint / other | $400,000 / $200,000 | Same | Same | Same |
| Phase-out rate | 5% of excess, rounded up to $1,000 | Same | Same | Same |
| ACTC earned income floor and rate | $2,500; 15% | Same | Same | Same |
| Taxpayer number for CTC and ACTC | SSN or ITIN | SSN or ITIN | SSN (one spouse if joint) | Same as 2025 |
| Child's SSN for CTC | Required | Required | Required | Required |
| Refund hold for ACTC returns | Mid-February 2024 | Mid-February 2025 | Mid-February 2026 | Mid-February 2027 |
| Form 1040 Dependents boxes | Column (2), column (4) | Column (2), column (4) | Row (3), row (7) | Row (3), row (7) |
| Chapter pages | 109-111 | 109-111 | 108-110 | Not published |
2026 column: planning figures from Rev. Proc. 2025-32, the 2025 law and the 2026 draft Schedule 8812 instructions; Pub 17 (2026) is not yet published.
Rule and text changes by year:
- 2023: the IRS lists a May 2024 update to the ACTC amount in the 2023 edition without saying what changed; Rev. Proc. 2022-38 and the current PDF both give $1,600.
- 2024: the ACTC cap rose from $1,600 to $1,700; a pointer to the Form 8862 instructions on appealing a ban was added.
- 2025: the CTC rose to $2,200 under the 2025 law, which also added the taxpayer SSN rule (section 70104); the refundable cap rests on a $1,400 base indexed each year ($1,700).
- 2025: Pub 17 lists the ODC taxpayer rule as new and moves from column to row labels on the Dependents section.
- 2026: the $2,200 amount is indexed after 2025; the draft form keeps the same lines.
Worked examples
Example 1 (tax year 2025, phase-out). A joint return has modified AGI of $410,400, two children aged 8 and 15 with SSNs, and a 19-year-old student dependent with an SSN. Credits before limits: 2 x $2,200 + $500 = $4,900. The excess over $400,000 is $10,400, rounded up to $11,000; 5% is $550. Credit: $4,900 - $550 = $4,350, if tax is at least that.
Example 2 (tax year 2025, ACTC). A single parent has one child aged 5 with an SSN, earned income of $10,000 and no tax before credits. Unused CTC is $2,200 and the cap is $1,700. The earned income test is 15% x ($10,000 - $2,500) = $1,125. The ACTC is the smallest figure: $1,125.
Example 3 (tax years 2024 and 2025, tax numbers). Rosa and Luis file jointly and each holds only an ITIN issued before the due date; their daughter Ana, aged 6, has an SSN valid for work. For 2024 the taxpayer SSN-or-ITIN rule allows a $2,000 CTC if the other tests pass. For 2025 neither spouse has an SSN, so no CTC or ACTC is allowed. If Luis later gets a work-valid SSN before the due date, the 2025 CTC is $2,200.
Common mistakes and exam traps
- Using $2,000 for 2025 or a $1,600 ACTC cap for 2024.
- Claiming a child who turned 17 during the year for the CTC instead of the ODC.
- Treating an ITIN as enough for a child's CTC, or for the taxpayer's CTC from 2025.
- Checking both the CTC and ODC boxes for the same person.
- Forgetting to round the phase-out excess up to the next $1,000.
- Expecting an ACTC when only the ODC is claimed, or when Form 2555 is filed.
- Skipping Form 8862 after an earlier denial.
Forms and lines map
| Form and line (2025 forms) | What goes there |
|---|---|
| Schedule 8812, lines 3 to 5 | Modified AGI; children under 17 with SSN; times $2,200 |
| Schedule 8812, lines 6 to 8 | Other dependents; times $500; total |
| Schedule 8812, lines 9 to 12 | $400,000 or $200,000; 5% reduction; remaining credit |
| Schedule 8812, lines 13 and 14 | Credit Limit Worksheet A; CTC and ODC to Form 1040, line 19 |
| Schedule 8812, lines 16a to 20 | Unused credit; $1,700 per child; earned income less $2,500, times 15% |
| Schedule 8812, line 27 | ACTC to Form 1040, line 28 |
| Form 1040 Dependents, rows (3) and (7) | SSN or other number; CTC and ODC boxes |
| Form 8862 | Eligibility after a denial |
The 2026 draft Schedule 8812 keeps these lines.
Check yourself
What is the maximum CTC per child? (2024)
Answer: $2,000.
What is the maximum ACTC per child? (2023)
Answer: $1,600.
A child turns 17 on December 30. CTC? (2025)
Answer: No. The child must be under 17 on December 31; consider the ODC.
At what modified AGI does the phase-out start for joint filers? (2025)
Answer: $400,000.
Single, modified AGI $213,500, one child. Credit? (2025)
Answer: $1,500. The excess $13,500 rounds up to $14,000; 5% is $700; $2,200 - $700 = $1,500.
Earned income $14,000, unused CTC $2,000, one child. ACTC? (2024)
Answer: $1,700. The earned income test gives $1,725, so the cap controls.
Joint return: one spouse has an SSN, the other an ITIN issued in time. CTC allowed? (2025)
Answer: Yes, if the child has the required SSN.
How long is the ban after a reckless error, and after fraud? (2025)
Answer: 2 years and 10 years.
Can the ODC be used to compute the ACTC? (any year)
Answer: No. Only the CTC can.
Frequently asked questions
Does a child with an ITIN qualify for the child tax credit?
No. The child needs an SSN valid for work. A child with an ITIN may qualify for the $500 ODC.
Is the child tax credit refundable?
Partly. The ACTC refunds up to $1,700 per child for 2024 and 2025, limited by earned income above $2,500.
Why is my refund late if I claimed the ACTC?
The IRS cannot issue the whole refund before mid-February (mid-February 2026 for 2025 returns; mid-February 2027 for 2026 returns, per the draft instructions), not just the ACTC part.
A CPA can review your return and the dependent information behind these credits.
Official sources
- IRS Publication 17 (2025), chapter 14
- IRS Publication 17 (2024), chapter 14
- IRS Publication 17 (2023), chapter 14
- IRS Instructions for Schedule 8812 (Form 1040), 2025
- IRS Instructions for Schedule 8812 (Form 1040), 2026 draft
- Public Law 119-21 (2025 tax law), section 70104
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments), section 4.05
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.