Pay attention before filing your taxes: These are the Child Tax Credit changes for 2025 that you need to know

The 2025 tax season is underway and US taxpayers will have until Tuesday 15 April to submit their 1040 forms to the IRS. While it is still over a month away, if you don’t think that you’ll make the deadline, then you must ask for an extension, or risk penalties and fines. Note, you will still have to pay any taxes that you might owe by Tax Day.

While it is mandatory for most Americans to submit a tax return to the IRS, even if you are not required to file one, it is most likely worth the work. The federal government offers taxpayers a number of tax credits, some of which are refundable, meaning that even if you paid less in taxes than the value of the credit, you could get the excess in the form of a tax refund. One such credit is the Child Tax Credit.

READ ALSO: 2025 IRS tax refund schedule: When will you get your deposit or check?

Child Tax Credit is partially refundable

Taxpayers with eligible children can claim the Child Tax Credit worth up to $2,000 per child. This year the credit is partially refundable, and there is an earnings threshold to start claiming the up to $1,700 portion known as the “Additional Child Tax Credit.” This refundable part of the tax credit is $100 more than the previous year.

Taxpayers who owe less in taxes than the refundable amount will have it added to their tax refund, and the non-refundable portion will reduce taxes owed dollar-for-dollar. To claim a refund, filers must complete Schedule 8812.

Last chance: Families which didn’t receive the 2021 CTC that are eligible may still be able to claim it

Requirements to receive up to $2,000 Child Tax Credit in 2025

The income requirements are the same as in 2024. Parents of eligible children must have an adjusted gross income (AGI) of less than $200,000 for single filers and $400,000 for married filing jointly to claim the full credit. For every $1,000, or fraction thereof, over those thresholds, the credit is reduced by $50.

For lower-income Americans, they must have an income of at least $2,500 to be eligible for the refundable portion of the credit. The amount that can be claimed is a portion of earnings above that threshold. To calculate how much can be claimed, you need to subtract $2,500 from your “earned income”, for example, Social Security benefits and unemployment compensation do not count, and then multiply that number by 15 percent.

What children are eligible for the 2025 Child Tax Credit?

Likewise, the eligibility requirement for children and dependents is the same as last year. The Child Tax Credit is available to parents with dependents under 17 as of 31 December 2024 and who meet certain eligibility requirements.

The child must be eligible to be claimed as a dependent on the taxpayer’s return and live at the same residence as the taxpayer for more than half the year. The child cannot provide more than half of their own financial support during the tax year.

The child must have a valid taxpayer identification number in the form of a work-authorized Social Security number (SSN).

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