Good news for parents! A new round of Child Tax Credit (CTC) payments is coming in 2025, providing much-needed financial relief to millions of families. If you have children under 17, you might be eligible for up to $2,000 per child. However, there are some important updates you should know before tax season begins.
How Much Can You Get?
For the 2024 tax year (which you’ll file in early 2025), eligible families can claim up to $2,000 per child. But not all of it is refundable. The refundable portion, called the Additional Child Tax Credit (ACTC), is capped at $1,700 per child. This means if you don’t owe taxes, you could still receive up to $1,700 back per qualifying child.
Who Qualifies for the Child Tax Credit?
To receive the CTC, you and your child must meet certain eligibility requirements:
✔ Age – Your child must be under 17 at the end of 2024.
✔ Relationship – The child must be your biological or adopted child, stepchild, foster child, sibling, or grandchild.
✔ Financial Support – You must provide more than half of the child’s expenses.
✔ Residency – The child must live with you for at least six months of the year.
✔ Citizenship – The child must have a valid Social Security number and be a U.S. citizen or resident.
✔ Income Limits – Families earning more than $400,000 (married) or $200,000 (single filers) will see a reduced credit amount.
When Will You Get Paid?
The IRS will start accepting 2024 tax returns on January 27, 2025. If you file early and choose direct deposit, you could receive your refund in as little as three weeks. Paper filers or those claiming extra credits (like the Earned Income Tax Credit) may experience longer wait times.
Big Changes Coming in 2026?
Here’s something important: The CTC is set to drop to $1,000 per child in 2026 unless Congress extends or modifies the current credit. Lawmakers are still debating potential expansions, but for now, families should plan accordingly.
Final Thoughts
The Child Tax Credit can put extra money in your pocket, but you need to know the rules to claim the full amount. Make sure you file your taxes early, check your eligibility, and stay updated on possible changes to the program. This credit could be a financial game-changer for millions of families in 2025!
