IRS can return up to US$3,400 annually to taxpayers' bank accounts if they meet several requirements and submit this documentation

The IRS sets aside for each tax year a benefit that can amount to up to US$1,700 for each eligible child through the Additional Child Tax Credit (ACTC), the refundable portion of the Child Tax Credit (CTC). In this way, a taxpayer with two children who meet the conditions could reach a maximum of US$3,400 for this credit when filing the tax return corresponding to 2026 in 2027.

The amount does not constitute an automatic payment for all families, since the ACTC depends on the taxpayer and the children meeting the requirements set by the IRS and on the calculation made in the tax return.

To access the benefit, taxpayers must claim the credit when filing their federal return for tax year 2026. In this regard, the IRS establishes that the CTC and the ACTC are calculated using Schedule 8812 (Form 1040), which must be filed together with the return when applicable.

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Who can receive up to US$3,400 from the IRS in 2027?

The benefit is aimed at taxpayers who have children who meet the conditions to be considered qualifying children. According to the IRS instructions for 2026, the requirements are:

• Have an eligible child: the child must be under 17 at the end of 2026 and meet the conditions to be considered a dependent.
• Relationship to the taxpayer: this may be a son, daughter, stepchild, foster child, sibling, or descendant of any of them, among other relationships recognized by the IRS.
• Residence: In general, the child must have lived with the taxpayer for more than half of 2026, although there are exceptions.
• Support: The child may not have provided more than half of their own support during the year.
• Social Security number: The child must have a valid SSN to work in the United States.
• Taxpayer income: the credit begins to phase out when modified adjusted gross income exceeds US$200.00 for most taxpayers or US$400,000 for those filing jointly,
• Taxpayer status: to claim the ACTC, the taxpayer must meet the citizenship, nationality, or immigration status conditions established by the IRS.

The refund may be received by direct deposit into a bank account, but to use that option, the taxpayer must provide the IRS with the account number and routing number when filing their return. The deposit can be directed to a bank account in the taxpayer’s name, their spouse’s name, or both in the case of a joint return.

What documentation must be submitted to claim the benefit?

The taxpayer must include the eligible children on their Form 1040 and complete Schedule 8812, which is the credit for other dependents. The IRS also requires identification information for the taxpayer and the children; to claim the CTC or ACTC on a 2026 return, the taxpayer must have a valid SSN, and each child generating the credit must also have one.

On a joint return, only one of the spouses needs to have a valid SSN to access the CTC or ACTC; the other must have an SSN or an ITIN issued before the tax-filing deadline, including extensions. If the taxpayer previously had a CTC, ACTC, or other related credit rejected or reduced for certain reasons, the IRS may also require Form 8862 to claim it again.

When will the IRS refund for the ACTC be received?

The return corresponding to tax year 2026 will be filed in 2027, and the IRS has already indicated in the draft instructions for Schedule 8812 for 2026 that it will not be able to issue refunds before mid-February 2027, when the return correctly claims the ACTC. It should be noted that this delay applies to the full refund, not just the portion corresponding to the credit.

The final amount and the specific date on which each taxpayer will receive the money will depend on their return and the processing carried out by the IRS.