In 2025, the Child Tax Credit allows families to claim up to $2,200 per qualifying child, with a refundable portion of up to $1,700.

Key Details of the 2025 Child Tax Credit

1. Credit Amount: For the tax year 2025, families can claim $2,200 for each qualifying child under the age of 17. This is an increase from the previous amount of $2,000 in 2024.

   
   

2. Refundable Portion: The refundable portion of the credit, often referred to as the Additional Child Tax Credit, allows families to receive up to $1,700 back per child, even if they do not owe any federal income tax.

   
   

3. Eligibility Requirements: To qualify for the Child Tax Credit, families must meet several criteria

4. Age: The child must be under 17 at the end of the tax year.

5. Residency: The child must have lived with the taxpayer for more than half the year.

6. Support: The child cannot provide more than half of their own financial support.

7. Relationship: The child must be a son, daughter, stepchild, foster child, sibling, half-sibling, or a descendant of one of these (such as a grandchild, niece, or nephew).

8. Citizenship: The child must be a U.S. citizen or resident alien with a valid Social Security number.

9. Income Phase-Out: The credit begins to phase out for higher-income households:

10. For married couples filing jointly, the phase-out starts at $400,000.

11. For all other filers, including single parents and heads of household, the phase-out begins at $200,000.

    
    

Conclusion

The 2025 Child Tax Credit is designed to provide financial relief to families, especially as the costs of raising children continue to rise. Families should ensure they meet the eligibility requirements and file the necessary forms to claim the credit on their federal income tax return for 2025, which will be filed in 2026. For more detailed information, families can refer to the IRS guidelines or consult tax professionals.