The IRS has unveiled the 2025 Child Tax Credit (CTC), offering families up to $2,000 per child under the age of 17 when they file their taxes in 2026. This news brings much-needed financial relief for families navigating the rising cost of living. Here’s what you need to know about the updated credit and how it works.
What’s the Child Tax Credit All About?
The Child Tax Credit helps reduce the tax burden on families while ensuring financial support for child-related expenses. For the 2025 tax year, eligible families can claim up to $2,000 per qualifying child.
Who Qualifies?
To qualify for the 2025 CTC:
- The child must be under 17 years old at the end of 2025.
- They must be a U.S. citizen, national, or resident alien with a valid Social Security Number issued before the tax return deadline.
- Families must meet income requirements:
- $200,000 or less for single filers.
- $400,000 or less for married couples filing jointly.
- Beyond these limits, the credit is reduced by $50 for every $1,000 in additional income.
Refundability: What’s New?
A highlight of the 2025 CTC is its partial refundability. Even if you owe little to no federal tax, you could receive up to $1,700 per child as a refund, ensuring support for lower-income households.
How to Claim It?
To claim the credit:
- File a Form 1040.
- Include a completed Schedule 8812 (Credits for Qualifying Children and Other Dependents) with your return.
These forms will calculate your credit eligibility and refund.
What’s Ahead?
It’s worth noting that the current credit provisions are set to expire after 2025 unless extended by Congress. Without action, the credit will revert to $1,000 per child with stricter eligibility rules.
Key Takeaways for Families
Stay informed about your eligibility and maximize your tax benefits. The IRS provides tools and resources on its website to guide you through the process.
