What this line means
The number of qualifying children from line 16 multiplied by $1,700. This is the maximum refundable additional child tax credit for 2025. The $1,700 per child limit means that even if your excess CTC on line 15 is the full $2,200 per child, only $1,700 per child can be refunded. The remaining $500 per child is nonrefundable and lost if your tax liability was too low to absorb it.
Does this apply to you?
- You have excess CTC on line 15 and are computing the maximum refundable amount
- You need to determine the cap on how much of the excess can be paid to you as a refund
Easy to overlook
The refundable amount increased to $1,700 for 2025 The maximum refundable amount per child has increased over recent years — it was $1,600 for 2023 and $1,700 for 2024 and 2025. With the CTC now at $2,200 per child, the nonrefundable-only gap is $500 per child ($2,200 minus $1,700). Filers using prior-year knowledge may underestimate the refundable portion available to them. 1 IRC Section 24(d)(1)(B) — maximum refundable amount per child
You still need earned income to claim the refundable portion Having a high line 17 amount does not guarantee a refund. The additional child tax credit is further limited by 15% of earned income over $2,500 (line 20). A filer with no earned income gets zero additional child tax credit regardless of how many children they have. 2 IRS Schedule 8812 instructions — line 17 computation
Watch out for this
Using $2,200 instead of $1,700 as the per-child refundable amount. The full $2,200 CTC is not entirely refundable. Only $1,700 per child can be refunded for 2025. The remaining $500 per child is available only as a nonrefundable credit against your tax liability.
Footnotes
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IRC Section 24(d)(1)(B), Maximum Refundable Amount Per Child. https://www.law.cornell.edu/uscode/text/26/24 ↩
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IRS Schedule 8812 Instructions, Line 17. https://www.irs.gov/instructions/i1040s8 ↩