When Will the 2025 Child Tax Credit Be Paid? Here’s the Expected Date

Published on: December 2, 2024

The Child Tax Credit (CTC) provides essential financial support to millions of families, helping ease the cost of raising children under the age of 17. For fiscal year 2024, claimed on tax returns filed in 2025, the refundable portion of the CTC remains at $1,700 per qualifying child. This critical benefit, which reaches about 48 million Americans, is designed to reduce the financial burden for families, particularly those with low or moderate incomes.

Here’s everything you need to know about the Child Tax Credit for 2025, including eligibility requirements and how to maximize your benefit.

Child Tax Credit

The Child Tax Credit is a non-refundable tax credit, meaning it can reduce your tax bill dollar for dollar. While most of the credit offsets taxes owed, eligible families may also receive a partial refund for any amount exceeding their tax liability. This refundable portion is capped at $1,700 per child for the 2024 fiscal year and will remain the same for 2025 unless Congress decides otherwise during the upcoming tax policy debates.

Key Dates

Filing Period: Tax returns claiming the 2024 CTC must be submitted between January and April 15, 2025.
Refund Timeline: If eligible for a refund, families can expect their payment within 21 days of filing, assuming there are no errors.

Eligibility Requirements

To qualify for the Child Tax Credit, families must meet the following criteria:

1. Age

The child must be under 17 years old by the end of the tax year.

2. Relationship

The child must be related to you in one of the following ways:

Son, daughter, or stepchild
Foster child placed by a qualified agency
Sibling, half-sibling, or step-sibling
Descendant of these relatives (e.g., grandchild, niece, or nephew)

3. Dependent Status

You must claim the child as a dependent on your tax return. The child cannot file a joint tax return unless it is solely to claim a refund of withheld taxes.

4. Residency

The child must have lived with you for at least half of the tax year, with exceptions for special circumstances such as temporary absences due to school, medical care, or military service.

5. Financial Support

You must provide at least half of the child’s financial support for the year.

6. Citizenship

The child must be a:

U.S. citizen
U.S. national
U.S. resident alien
The child must also have a valid Social Security number.

7. Income Limits

The credit begins to phase out for higher-income families. The phaseout starts at:

$200,000 for single filers
$400,000 for married couples filing jointly

How to Claim

Families eligible for the CTC must file their annual tax return to claim the benefit. Here’s how:

Collect Documentation: Gather proof of income, dependent status, and residency.
File on Time: Ensure you file before the April 15, 2025 deadline to avoid delays.
Check for Errors: Double-check your return for accuracy, particularly your child’s Social Security number and dependent information.
Track Your Refund: Use the IRS “Where’s My Refund?” tool to monitor the status of your refund.

Maximizing the Child Tax Credit

Families can take proactive steps to maximize their benefit:

Adjust Income: If possible, ensure your income stays below the phaseout thresholds.
Plan Early: Review eligibility requirements annually, particularly if your financial situation changes.
Seek Assistance: Consult a tax professional to ensure you’re claiming the full credit and avoiding costly errors.

Future of the Child Tax Credit

While the refundable portion of the CTC will remain $1,700 in 2025, tax policy debates could lead to changes. Advocates continue to push for adjustments that increase the credit’s value and accessibility, especially for low-income families. Families should stay informed about potential updates as the tax season approaches.

By knowing the requirements and planning ahead, families can fully leverage the Child Tax Credit to support their financial well-being while navigating the rising costs of raising children.