The IRS has announced the release of the Additional Child Tax Credit (ACTC) payments in October 2025, offering up to $1,700 per qualifying child for the 2024 tax year. This refundable credit is designed to help low- and moderate-income families reduce financial stress and cover essential living expenses such as school, childcare, and groceries.
Taxpayers who filed their 2024 tax returns between mid-September and early October 2025 and have no tax liability can expect their ACTC payments within three weeks of filing. The funds will be sent via direct deposit or paper check, based on the method selected on the tax return.
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Introduction to the ACTC Program
The Additional Child Tax Credit (ACTC) is part of the broader Child Tax Credit (CTC) initiative, which provides financial support to families raising children under 17. Unlike the non-refundable portion of the CTC, the ACTC allows eligible households to receive a refund even if they owe no federal tax.
According to IRS analysts, “The ACTC ensures that lower-income families still receive tangible financial relief, recognizing the real costs of raising children in today’s economy.”
In 2025, the maximum refundable ACTC per child is $1,700, and the payment applies to qualifying dependents who are under age 17 at the end of 2024.
Key Features / Overview
| Feature | Details |
|---|---|
| Program Name | Additional Child Tax Credit (ACTC) |
| Parent Program | Child Tax Credit (CTC) |
| Administered By | Internal Revenue Service (IRS) |
| Country | United States |
| Maximum Amount | Up to $1,700 per qualifying child |
| Tax Year | 2024 |
| Payment Month | October 2025 |
| Payment Methods | Direct deposit or paper check |
| Age Limit | Child under 17 at the end of 2024 |
| Eligibility Threshold | Minimum $2,500 earned income |
| Income Phase-out Limits | $200,000 (single), $400,000 (married filing jointly) |
Eligibility Rules
To qualify for the $1,700 ACTC in October 2025, taxpayers must meet specific IRS requirements:
- Child Age: The child must be under 17 at the end of 2024.
- Relationship: Must be a son, daughter, stepchild, foster child, sibling, or a descendant of any of them.
- Residency: The child must have lived with the taxpayer for at least half the year.
- Support: The child cannot provide more than half of their own financial support.
- Income: The taxpayer must earn at least $2,500 annually.
- Income Limits: Single filers must earn less than $200,000, while married couples filing jointly must earn less than $400,000.
- Social Security Numbers: Both the taxpayer and the qualifying child must have valid SSNs.
Expert Insight:
“The ACTC targets working-class families who may not owe income taxes but still deserve assistance,” explains Dr. Emily Warren, a senior tax policy researcher. “It bridges the gap between low income and child-related expenses.”
Benefits of the ACTC Program
The ACTC serves as a vital financial safety net for families, particularly during periods of inflation or high living costs. It provides direct relief for:
- Education costs: School supplies, uniforms, and tuition fees.
- Childcare and health needs: Covering babysitting, daycare, or medical expenses.
- Household essentials: Food, utilities, and transportation costs.
Tax Expert Jason Meyer notes, “Refundable credits like ACTC are critical because they put money directly into the hands of families who need it most — not just reducing tax bills but creating real economic impact.”
Payment & Processing Details
The IRS will begin issuing ACTC payments in October 2025. Processing time varies based on how you filed your tax return and your chosen payment method.
| Filing Type | Expected Payment Timeline | Delivery Mode |
|---|---|---|
| E-filed Return (Direct Deposit) | Within 3 weeks of filing | Direct deposit |
| E-filed Return (Paper Check) | Within 3–4 weeks of filing | Mailed check |
| Paper-Filed Return | 4–6 weeks of processing time | Direct deposit or mail |
| Returns Filed After Early Oct 2025 | Processed on a rolling basis | As per IRS schedule |
IRS Spokesperson Dana Lewis adds, “Filing electronically with direct deposit is the fastest and most secure way to receive your ACTC payment.”
Comparison / Extra Insights
| Aspect | Child Tax Credit (CTC) | Additional Child Tax Credit (ACTC) |
|---|---|---|
| Type | Non-refundable | Refundable |
| Eligibility | All taxpayers with qualifying dependents | Those who owe no taxes after applying CTC |
| Maximum Benefit (2024) | Up to $2,000 per child | Up to $1,700 per child |
| Payment Method | Reduces tax liability | Direct cash refund |
| Income Phase-out | $200,000 / $400,000 | Same limits apply |
| Administered By | IRS | IRS |
How to Claim the $1,700 ACTC
To claim the ACTC for your 2024 tax return and receive your October 2025 payment:
- File your 2024 federal tax return (Form 1040 or 1040-SR).
- Attach Schedule 8812 (Credits for Qualifying Children and Other Dependents).
- Include each qualifying child’s SSN and your income details.
- Select your refund method: direct deposit or paper check.
- Submit by early October 2025 to ensure timely payment.
- Use the IRS “Where’s My Refund?” tool to track your ACTC status.
Pro Tip: Electronic filing minimizes errors and accelerates your refund process.
Recent Updates (As of October 2025)
- The IRS confirmed that ACTC refunds will start rolling out mid-October 2025.
- Families filing electronically in September can expect to receive their refunds by late October 2025.
- The refund tool on IRS.gov updates daily, usually overnight.
- The IRS warns taxpayers to beware of phishing scams claiming to offer “fast-track” ACTC refunds.
IRS official Rebecca Cole emphasizes, “The only legitimate portal to track your refund is the IRS.gov website. We never send unsolicited emails or texts requesting personal data.”
Why the $1,700 ACTC Matters for Families
The ACTC provides direct economic relief to millions of families across the United States. It boosts consumer spending, supports child welfare, and strengthens financial stability for low- and moderate-income households.
According to the Center on Budget and Policy Priorities (CBPP), refundable credits like ACTC reduce child poverty by helping families meet essential needs.
Economist David Brooks summarizes it well:
“The ACTC isn’t just tax relief — it’s social policy in action. It ensures that children in working families have food, stability, and opportunity.”
FAQs About $1,700 ACTC Coming in October 2025
Q1. How much can I get from the ACTC in 2025?
You can receive up to $1,700 per qualifying child for the 2024 tax year.
Q2. Who qualifies for the ACTC payment?
Families with dependent children under 17, valid SSNs, and incomes below $200,000 (single) or $400,000 (married) qualify.
Q3. When will ACTC payments be distributed?
Payments begin in October 2025, typically within three weeks of the IRS processing your 2024 return.
Q4. Is ACTC taxable?
No. The ACTC is a refundable tax credit, meaning it’s not taxable and doesn’t count as income.
Q5. Can non-filers receive ACTC?
Yes, but they must file a 2024 tax return to claim the credit, even if they owe no taxes.
Q6. How do I track my refund?
Use the “Where’s My Refund?” tool on IRS.gov by entering your SSN, filing status, and refund amount.