In 2021, the American Rescue Plan temporarily expanded the Child Tax Credit (CTC), offering up to $3,600 per child under age 6 and $3,000 for children ages 6 to 17.
However, these enhancements expired after the 2021 tax year, and the CTC reverted to its previous structure for subsequent years. As of 2025, the CTC provides up to $2,000 per qualifying child under age 17, with a maximum refundable amount of $1,700.
Who Qualifies for the Child Tax Credit?
To be eligible for the CTC, a child must meet the following criteria:
- Age: Under 17 at the end of the tax year.
- Relationship: Must be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (e.g., grandchild, niece, or nephew).
- Support: Must not provide more than half of their own support during the tax year.
- Residency: Must have lived with you for more than half the tax year.
- Dependency: Must be claimed as a dependent on your tax return.
- Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Tax Filing Status: Cannot file a joint return for the year, or filed the joint return only to claim a refund of taxes withheld or estimated taxes.
Income Limits
The CTC begins to phase out if your modified adjusted gross income (MAGI) exceeds: Wikipedia+6H&R Block Tax preparation company+6EITC Central+6
- $200,000 for single filers.
- $400,000 for married couples filing jointly.
The credit amount decreases by 5% of MAGI over these thresholds. Tax Policy Center+1wsj.com+1
Claiming the Child Tax Credit
To claim the CTC, file your taxes using Form 1040 and include Schedule 8812 (Credits for Qualifying Children and Other Dependents). This helps determine your eligibility and calculate the credit amount. Even if you don’t typically file taxes, it’s important to do so to receive the credit and other potential benefits. H&R Block Tax preparation company+1elpais.com+1Poverty Solutions
Stay Informed
Tax laws can change, and proposals to expand the CTC are periodically introduced. For instance, the Tax Relief for American Families and Workers Act proposes increasing the maximum refundable credit amount and adjusting income thresholds. However, as of now, these changes have not been enacted.
Understanding the current structure of the Child Tax Credit is crucial for eligible families to maximize their tax benefits. Ensure you meet the eligibility criteria and stay updated on any legislative changes that may affect the credit in future tax years.
