In 2025, Americans will file their taxes for 2024, and millions may be eligible to receive a child tax credit, which is available to parents and guardians of minors of a certain age.
Why It Matters
Enacted in 1997, the child tax credit currently provides up to $2,000 per child to about 40 million families every year.
It has been praised for lifting millions of children out of poverty, and research shows that a temporary expansion during the coronavirus pandemic significantly reduced food insufficiency and helped families achieve basic needs. When the expansion expired in 2022, 3.2 million American children fell below the poverty line.
What Is the Child Tax Credit for 2025?
In 2025, when Americans file their 2024 tax returns, the maximum child tax credit is $2,000 per qualifying child. That applies to children under 17 who are dependents in your household.
The refundable portion of the tax credit is $1,700 per qualifying child.
Qualifying children must have a Social Security number and be under 17 years old at the end of 2024. They also must live with you for more than half of the tax year and provide no more than half of their own financial support during 2024.
The child tax credit will decrease if the parent or guardian's gross income surpasses $200,000 for individual returns or $400,000 for joint returns.
How Does the Child Tax Credit Compare to 2024 and 2023?
The child tax credit available this year is the same amount compared to last year, which is when Americans filed taxes for the 2023 tax year. For the 2023 tax year, the 2022 child tax credit was also $2,000 per child.
However, in 2026, the value of the child will be lower, at just $1,000 per child.
How Early Can You File Taxes in 2025?
Taxpayers can begin filing taxes as early as January 29, when the Internal Revenue Service (IRS) will first make forms available.
The IRS Free File program will also be available for tax prep starting on January 12.
What Is the Deadline for Filing Taxes in 2025?
To receive the child tax credit, you must list your children or dependents on the 1040 tax return form.
Unless you have an extension, all taxes will be due April 15.
What People Are Saying
Kevin Thompson, a finance expert and the founder of 9i Capital Group, told Newsweek: "The credit is set to revert back to $1,000 without legislative changes after 2025. This could significantly impact families that have become accustomed to tax refunds over the past several years."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "We've seen in recent years how the Child Tax Credit is a gamechanger for millions of families, particularly those in lower income families. Parents and guardians can receive a $2,000-per-child tax credit, assuming the child being claimed was under the age of 17 in 2024. While this amount is nowhere near the higher amounts set under the American Rescue Plan during the pandemic, they're still important to giving millions of families a boost. More importantly, up to $1,700 of this amount can be issued in a refund to the taxpayer, a higher percentage than in past years where the majority of the credit could only go to paying your tax bill."
What Happens Next
Taxpayers have until April 15 to file their returns unless they've been granted an extension.
If they get an extension to file, they will not get an extension to pay, which means all balances will incur fees and penalties.
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