Additional Child Tax Credit 2027 Refundable Calculator
Estimate the refundable portion of the 2027 Child Tax Credit (Schedule 8812) when nonrefundable CTC exceeds your tax liability.
How the Refundable ACTC Works for 2027
The Child Tax Credit is $2,000 per qualifying child under 17. The first portion offsets your federal tax (nonrefundable). The Additional Child Tax Credit (ACTC) makes up to $1,700/child REFUNDABLE for 2027 — you receive cash even if you owe zero tax. The refundable portion is the LESSER of: (a) unused nonrefundable CTC, (b) 15% of earned income over $2,500, or (c) $1,700 × number of qualifying children. Source: IRC §24(d), Schedule 8812. Last updated: May 2026.
Earned Income Formula
Earned income includes W-2 wages, self-employment net earnings, and certain disability income — but NOT unemployment, Social Security, or investment income. The 15% formula on income over $2,500 means a parent with $32K earned has $4,425 in formula refundable cap (15% × $29,500). Compare against the $1,700 per-child cap to determine the lower.
Three Children = Full $5,100 Refundable
With 3+ qualifying kids and $32K+ earned income, you can claim the full $5,100 refundable ACTC ($1,700 × 3). Combined with the EITC for 3-kid families (~$8,150 in 2027), refundable credits alone can yield $13,000+ in IRS refund — often the largest single cash inflow of a working family's year.
OBBB Made CTC Permanent at $2,000
The OBBB tax law made the $2,000/child Child Tax Credit permanent (it would have reverted to $1,000/child after 2025 under TCJA sunset). The $1,700 refundable cap is inflation-indexed annually. The earned income threshold of $2,500 remains fixed — NOT indexed. Phaseout begins at $200K MAGI single / $400K MFJ.
Frequently Asked Questions
What's the 2027 ACTC refundable cap per child?
Up to $1,700 per qualifying child for 2027 (IRS Rev. Proc. 2024-40 inflation projection). The remaining $300 of the $2,000 total CTC is nonrefundable. You receive the refundable portion in cash even with zero federal tax owed.
How is the ACTC earned income formula calculated?
15% of earned income exceeding $2,500. Earned income of $32,000 means formula = 15% \u00d7 ($32,000 \u2212 $2,500) = $4,425. This is one of three caps \u2014 you receive the LESSER of: this formula amount, the per-child cap \u00d7 kids, or unused nonrefundable CTC.
Can I claim ACTC with no tax liability?
Yes \u2014 that's the point of 'refundable'. If you owe zero federal income tax, your entire allowed CTC (up to $1,700/child for 2027) becomes a refund check. Working low-income families with 2-3 kids often receive $3,400-$5,100 in pure ACTC refunds.
Is ACTC the same as EITC?
No, but they stack. ACTC is the refundable portion of the Child Tax Credit (Schedule 8812). EITC (Earned Income Tax Credit) is a separate refundable credit (Schedule EIC). A family with 3 kids and $32K earned income can claim BOTH \u2014 combined refund often exceeds $13,000.
What income level disqualifies me from ACTC?
The full $2,000 CTC phases out starting at $200,000 MAGI single / $400,000 MFJ \u2014 reducing by $50 for every $1,000 over the threshold. Above approximately $240,000 single / $440,000 MFJ, the credit reaches zero. Below the phaseout, full $2,000/child applies.
Did OBBB make the $2,000 CTC permanent?
Yes. The OBBB tax law made the $2,000 per qualifying child CTC permanent, eliminating the original TCJA sunset that would have reverted to $1,000/child in 2026. The refundable $1,700 cap continues to inflation-adjust annually under the same law.