In 2025, American families will be able to claim the child tax credit on their 2024 tax returns. This benefit is designed for parents and legal guardians of minors who meet certain age and residency requirements. Since its implementation in 1997, it has become an important source of tax relief for millions of families.
The Child Tax Credit program provides up to $2,000 for qualifying minors under 17 years of age at the end of the tax year. Families can receive a check even if they don’t have a high tax liability, as $1,700 is refundable.
Other requirements for the 2025 child tax credit
To claim the child tax credit, children must have a valid Social Security number and live with the taxpayer for at least half of the tax year.
Families with adjusted gross incomes up to $200,000 (individual) or $400,000 (joint) can receive the full benefit. Those with higher incomes will see a proportional decrease in their total credit amount.
The credit for 2024 remains the same as in 2023, at $2,000 per qualified minor. The credit was temporarily expanded during the pandemic through the American Rescue Plan, providing up to $3,600 per child. This measure expired in 2022, causing a significant increase in child poverty rates.
Without legislative changes, the credit for children will be reduced to $1,000 in 2026, potentially affecting families’ tax refunds.
Important dates to file taxes: don’t miss it
The IRS estimates that billions of dollars go unclaimed annually, including the Child Tax Credit. This is primarily because eligible families lack knowledge or have limited access to tax preparation resources.
The Internal Revenue Service (IRS) will launch the tax filing system on January 29, 2025, with the Free File program available on January 12. The general deadline for filing returns is April 15, unless an extension is obtained.
Remember that an extension to file does not extend the deadline to pay taxes owed. Any outstanding balances after April 15 will be subject to interest and penalties.
Child tax credits in other years in numbers
During the COVID-19 pandemic, the Child Tax Credit was temporarily expanded under the American Rescue Plan. This resulted in monthly payments of up to $300 per child under 6 years old and $250 per child between 6 and 17 years old, for a total benefit of up to $3,600 per qualifying child. According to Census Bureau estimates, this measure contributed to a 46% reduction in child poverty in the US.
In 2021, increased credit payments prevented 3.7 million children from falling into poverty. After the expansion ended in 2022, child poverty rates increased from 5.2% to 12.4%, reversing previous progress.
According to an Urban Institute study, approximately 92% of eligible families claimed the credit in 2021. However, 8% of households, primarily those with low incomes and no access to tax preparation services, did not use the benefit.
In its first year, the Child Tax Credit offered a maximum of $400 per qualified child. By 2001, the amount had risen to $600, and it has risen on a regular basis since.
According to statistics, 67% of families use it for food purchases and 39% for housing payments (rent or mortgage). On the other hand, 29% use it to pay for essential services like electricity and water.
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