The child tax credit is an important tax exemption provided by the government to reduce the cost of raising children in the US. In 2021, under the American Rescue Plan Act, this credit was temporarily increased to $3600 for children under 6 years of age. And it was increased to $3000 for children aged 6 to 17 years.
But in 2025, no new law has yet been passed to reinstate the increased amount. Currently (in 2025), the Child Tax Credit is $2,000 per eligible child.
| Key Information | Details |
|---|---|
| Current CTC Amount (2025) | $2,000 per qualifying child |
| Potential Expansion | Proposals to increase the CTC to $3,600 per child are under discussion but not enacted |
| Eligibility Criteria | Child under 17 at year-end, relationship and residency requirements, income thresholds |
| Income Phase-Out Thresholds | $200,000 for single filers; $400,000 for married filing jointly |
| Refundable Portion | Up to $1,700 per qualifying child |
| Official IRS Resource | IRS Child Tax Credit |
Current Status of the Child Tax Credit
When filing taxes in 2025, parents or guardians can claim a tax credit of up to $2,000 per eligible child.
Up to $1,700 of this amount is refundable, meaning even if your tax liability is zero, you can still get this amount as a tax refund.
Eligibility for Child Tax Credit
Your child must meet certain conditions to avail the CTC:
- Age: The child must be under 17 years of age.
- Relationship: The child must be your son, daughter, stepchild, foster child, sibling or their child (such as grandchild, nephew or niece).
- Support: The child must not be providing more than half of his or her own financial support.
- Dependent: You must show the child as a dependent on your tax return.
- Citizenship: The child must be a US citizen, national or resident alien.
- Residency: The child must have lived with you at least half of the time during the tax year.
Income Limit:
- For single filers: Up to $200,000
- For married joint filers: Up to $400,000
Above this limit, the credit gradually decreases.
Can the CTC amount be $3,600 in 2025?
So far, no new legislation has been passed that would raise the CTC back to $3,600 in 2025. Some politicians and political parties have recommended it:
- Vice President Kamala Harris has proposed a CTC of up to $6,000 for young children (under age 1).
- Some Republican leaders want to increase the credit to $5,000 per child.
However, these are all proposals right now and have not been turned into law.
How to claim the Child Tax Credit in 2025?
If you are eligible for the CTC, you can claim it by:
- Check eligibility – Does your child meet all the criteria?
- Fill out the forms – Fill out Form 1040 and attach Schedule 8812 when filing your tax return.
- Calculate the credit – The instruction page on Schedule 8812 can help you determine the amount of the CTC.
- File a tax return – File your tax return electronically or by mail with the correct information.
Frequently asked questions (FAQs)
Is the Child Tax Credit refundable?
Yes, it is refundable in 2025 up to $1,700 per child. This means that even if you don’t have a tax liability, you can still get this amount as a refund.
Will the CTC increase to $3,600 in 2025?
Not yet. Some politicians have supported it, but no such legislation has been passed.
What are the income limits to qualify for this credit?
If your income is less than:
$200,000 (single filers) or
$400,000 (married filing jointly), you can benefit from the full $2,000 per child.
Conclusion:
If you have qualifying children in your family, the Child Tax Credit can significantly reduce your tax liability even in 2025. Although the $3,600 amount has not yet been implemented, you can stay updated on any new legislation through the IRS website or official news sources.
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