There are over 48 million people who benefit from the Child Tax Credit, which helps low-income families with the maintenance of their children under the age of 17.
Although this credit is non-refundable and can lower your tax bill dollar for dollar, there are several circumstances in which individuals may also qualify for a partial credit refund.
Tax returns submitted between early 2025 and April 15 of that year are eligible to receive the Child Tax Credit for fiscal year 2024. The Child Tax Credit will have a $1,700 refundable component.
Although the IRS states on its website that the CTC for fiscal year 2025 to be claimed on tax returns in 2026 will stay at $1,700, there is a suggestion that it be brought up during the tax debate in 2025.
If you file your tax return before the April 15 deadline, you should check the status of your return online. Payment may arrive 21 days after you file your return with the IRS.
Child Tax Credit Requirements for 2025
Taxpayers must fulfill the following criteria in order to be eligible for the Child Tax Credit on their yearly tax returns:
Age: At the end of the tax year, your child must have been younger than 17.
Relationship: Your kid must be your son, daughter, foster child, stepchild, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of those individuals (e.g., a niece, nephew, or grandchild).
The youngster must be able to be legitimately claimed as a dependent. Unless the child is requesting a refund of withheld income taxes or anticipated taxes paid, they are not permitted to submit a joint tax return.
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Residency: Although there are few exceptions, the child you are claiming must have resided with you for at least half of the year.
Financial assistance: Over the course of the previous year, you had to have contributed at least half of the child’s maintenance. To put it another way, your qualifying child is most likely not eligible if they received financial support for longer than six months.
Citizenship: Your child must have a valid Social Security number and be a “U.S. citizen, U.S. national, or U.S. resident alien,” according to the IRS.
Income: Generally speaking, parents or caregivers who are applying for the credit are also not allowed to earn more than a set amount. The credit is progressively diminished until it is removed, depending on how much their income surpasses that limit.
