Rising inflation and the cost of parenting have increased financial pressure on American families. In such a situation, the Child Tax Credit (CTC) plays an important role. This credit provides tax relief to millions of families every year and helps in the maintenance of children.
The CTC was temporarily increased to $3,600 and $3,000 in 2021, but this increased amount is not applicable in 2025. Nevertheless, eligible families can still claim a tax credit of up to $2,000 per child.
In this article, we will tell you who is eligible for the child tax credit in 2025, what the income limits are, when the payment will be received, and how you can make the most of it.
Key points of the child tax credit in 2025
| Aspect | Details |
|---|---|
| Maximum Credit Amount | Up to $2,000 per child under 17 |
| Refundable Amount | Up to $1,700 per child through the Additional Child Tax Credit (ACTC) |
| Income Limits | Phase-out begins at $200,000 (single filers) and $400,000 (married filing jointly) |
| Eligibility Criteria | U.S. citizen children with valid SSNs, claimed as dependents, and under 17 years old |
| IRS Payment Schedule | No monthly payments; credit is claimed when filing taxes |
| Legislative Updates | The expanded 2021 CTC has not been reinstated as of 2025 |
| Official IRS Resource | IRS Child Tax Credit Info |
What is the Child Tax Credit?
The Child Tax Credit is a federal tax benefit provided to provide financial relief to families with children. This credit reduces your tax liability, and in some cases, a portion may be refunded if your tax liability is low.
Temporary extension in 2021
In 2021, the CTC was extended to $3,600 (for children under 6) and $3,000 (for ages 6–17) under the American Rescue Plan, which also included monthly payments. But this extension was only for that year and has now expired.
How much can I get in 2025?
Under the CTC for the 2024 and 2025 tax years:
- Up to $2,000 credit per eligible child
- Up to $1,700 of this may be refundable (through the Additional Child Tax Credit).
- The rest will only offset tax liability (non-refundable).
If you don’t pay taxes, you won’t get the full $2,000, but up to $1,700 is refundable provided your income is $2,500 or more.
Who is eligible for the CTC?
Parent eligibility:
- You must attach the Schedule 8812 form with your tax return (Form 1040).
- Must have lived in the U.S. for at least half of the year.
- Be within the income limits.
Child eligibility:
- Must be under 17 years of age as of December 31, 2025.
- The child can be your biological, step, adopted, foster, sibling, grandchild, or nephew/niece.
- Must have lived with you for at least 6 months.
- Must not be paying more than 50% of their own financial support.
- Must have a valid Social Security Number (SSN).
- Must be claimed as a dependant on a tax return.
Income limits and phase-out rules
The full $2,000 credit will be available to those whose income is below these limits:
| Filing Status | Income Limit |
|---|---|
| Married Filing Jointly | Up to $400,000 |
| Single / Head of Household / Married Filing Separately | Up to $200,000 |
When and how will you get paid in 2025?
Unlike 2021, there is no monthly payment for the CTC in 2025. You will only get the credit when you file a tax return. This amount will either:
- Reduce your taxes.
- Get a refund.
Note: You must earn at least $2,500 to get a refundable amount of up to $1,700.
How to claim CTC 2025?
Claiming CTC is easy:
- File a tax return (attach Schedule 8812 with Form 1040).
- Make sure you have an SSN for the child.
- Earn at least $2,500.
- Use IRS software or get help from a tax professional.
- File taxes by the deadline (Deadline: April 15, 2025).
Conclusion:
The Child Tax Credit still remains an important tax benefit for families in 2025. Even though the increased amount of $3,600 or $3,000 is not applicable this year, the $2,000 per child credit is still available, of which up to $1,700 is refundable. All you need to do is follow the IRS’s prescribed procedure, ensure eligibility, and file your tax returns on time. If you file taxes with the right documentation and eligibility, this credit can bring a lot of relief to your family budget.
FAQs
Q.1 Is the $3,600 Child Tax Credit coming back in 2025?
A. No, the increased amount for 2021 was temporary and has not been applied in 2025.
Q.2 Will I get the CTC if I don’t pay taxes?
A. Yes, up to $1,700 can be received as a refund under the ACTC, provided you earn $2,500.
Q.3 When will I get the CTC amount in 2025?
A. The CTC is claimed at the time of tax filing and will be available to you as a tax refund or tax rebate.
Q.4 Are the $3,600 and $3,000 child tax credits coming back in 2025?
A. No, this was only a temporary extension in 2021 under the American Rescue Plan. The maximum credit in 2025 is limited to $2,000 per child.
Q.5 How do I claim the child tax credit in 2025?
A. You must use IRS Form 1040 and Schedule 8812 on your 2024 tax return (filed in 2025).
Related posts:
Child Tax Credit 2025: $3,500 Refunds Coming, Check Who Qualifies & When
IRS 2025 Tax Refund Schedule: What Families with Dependents Need to Know
$2.4 Billion in IRS Stimulus Checks: Are You Eligible to Claim Your Share?
Will You Get a $3,000 IRS Refund or a $1,702 PFD Payment?
IRS to Issue $2,000 Refunds to Eligible Families in the Coming Months
Double Payments of $484 and $1,450 Available in April 2025; How to get it? Check Eligibility
$725 Monthly Stimulus Check Payment Announced, Know The Eligibility And Pay out Schedule
Get Ready for $1756 SNAP Payments Tomorrow – Check If You’re Getting Yours!
Your 2025 IRS Refund Might Be Smaller Than Expected – Check Your Status ASAP!
Navigating Retirement- Strategies Amid Social Security Uncertainty
How to Claim the $1,400 IRS Stimulus Check Before the Deadline
$3,650 Child Tax Credit Coming in April 2025 – Check Eligibility & Payout Status Now!
