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.