Child Tax Credit Changes in 2025: The 2025 tax season has begun, and US taxpayers have until Tuesday, April 15, to submit their 1040 forms to the IRS. If you think you might not meet the deadline, it is important to request an extension to avoid any penalties or fines. However, keep in mind that even if you get an extension, any taxes you owe still need to be paid by Tax Day.
Most Americans are required to file a tax return with the IRS, but even if you are not required, filing your return may still be worth it. The government offers various tax credits that can benefit you, including refundable ones.
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This means that if the value of the credit is greater than what you owe in taxes, you could receive the difference as a tax refund. One such credit is the Child Tax Credit, which is available to families with eligible children.
If you’ve adopted a child, see if you now qualify for the Earned Income Tax Credit. Visit the EITC Assistant today: https://t.co/itg1THQrhS #IRS #NationalAdoptionMonth pic.twitter.com/hXC9PuY62e
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The Child Tax Credit for 2024 offers up to $2,000 per child. According to AS News, the credit is partially refundable, and there are income thresholds that determine how much of the credit you can claim. The refundable part of the credit, known as the “Additional Child Tax Credit,” can be worth up to $1,700.
This amount is $100 higher than the previous year. If you owe less in taxes than the refundable portion, you will get the excess amount back as a refund. To claim this, you need to complete Schedule 8812.
What if you missed it?
If you missed receiving the Child Tax Credit in 2021, families who were eligible may still be able to claim it. To qualify for the full $2,000 credit in 2025, your adjusted gross income (AGI) should be less than $200,000 if you are a single filer, or less than $400,000 if you are married and filing jointly. If your income exceeds these thresholds, the credit will be reduced by $50 for every $1,000 you earn above the limit.
For lower-income individuals, you must have earned at least $2,500 to be eligible for the refundable portion of the credit. The amount you can claim is a percentage of the income over $2,500, calculated at 15 percent. Note that Social Security benefits and unemployment compensation do not count as earned income for this calculation.
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Child Tax Credit changes for 2025: Eligibility
To be eligible for the Child Tax Credit, the child must be under 17 years old on December 31, 2024, and meet certain conditions. They must be your dependent and live with you for more than half the year.
The child should not provide more than half of their own financial support during the year. Additionally, the child must have a valid Social Security number that authorizes them to work.