Is your family relying on the Child Tax Credit for significant tax savings in the upcoming year? As we approach tax year 2025, eligible families can still benefit from claiming up to $2,000 per child. However, this amount is at risk of decreasing to $1,000 in 2026 if Congress does not intervene.
The enhanced credit, established by the 2017 Tax Cuts and Jobs Act, is scheduled to expire after 2025, as reported by Forbes. In this article, learn the most recent IRS regulations regarding the Child Tax Credit, what these changes mean for your tax refund, and strategies to navigate this period of uncertainty effectively.
How Much Is the Child Tax Credit in 2025?
What is the 2025 Child Tax Credit worth per child?
For returns filed in 2025, the child tax credit amount stays at $2,000 per qualifying child under the current tax law. If you’re a parent or guardian with a qualifying dependent child, you may be able to claim the child tax credit to lower your income tax return.
Out of that, $1,700 is a refundable credit through the refundable additional child tax credit, also known as the ACTC. So even if your tax bill is low, you may be eligible to claim a refund for the difference.
- $2,000 total credit amount
- Up to $1,700 refund per child, depending on your modified adjusted gross income
- You must file Schedule 8812 with your federal income tax return
The credit is a tax benefit you don’t want to skip, especially if you're also claiming the earned income tax credit or the credit for other dependents.
Could the Child Tax Credit decrease after 2025?
Yes—and that’s why this year matters. If Congress doesn’t extend the expanded child tax credit introduced under the 2017 TCJA, the credit is reduced to $1,000 per child in 2026. This would impact returns filed in 2027.
And it's not just the child tax credit amounts—income thresholds would also shrink:
- From $200,000 to $75,000 for single filers
- From $400,000 to $110,000 for married joint filers
2024 and 2025 tax years may be the last time you can claim the full amount before major changes hit. This is a valuable tax credit, especially for business owners managing multiple dependents and trying to maximize their child tax credit refund.
Further Reading: Discover how taxpayers may qualify for child tax credits
Do You Qualify for the Child Tax Credit in 2025?
What are the IRS rules to qualify for the Child Tax Credit?
To access the child tax credit, the Internal Revenue Service (IRS) says your child must meet these exact criteria:
- Child must be under 17 at the end of the tax year
- Be your biological, adopted, or foster child, stepchild, sibling, or descendant (like a grandchild or niece)
- Child may live with you for more than half the year
- Be claimed as a dependent on your income tax return
- Have a Social Security number valid for employment before your filing deadline
If you meet these, you may be eligible to claim the credit. The credit is a tax benefit worth the paperwork.
Who qualifies for the Additional Child Tax Credit?
You may be able to claim the additional child tax credit—the refundable portion—if:
- Your tax credit is higher than your tax liability
- You earned at least $2,500 during the year
- You file Schedule 8812 correctly
This is especially helpful if your qualifying child earns you a $2,000 credit but you owe little or no taxes. You could get up to $1,700 refunded, depending on how much you earned and paid in taxes.
Further Reading: Discover how the Child Tax Credit can benefit your family
How to Claim the Child Tax Credit on Your Tax Return
What forms do I need to claim the child tax credit?
You must file a tax return and attach Schedule 8812 to claim the child tax credit and the additional child tax credit.
The form will:
- Confirm your qualifying child meets all requirements
- Calculate the credit amount you’re eligible for
- Determine how much is refundable
Even if you don’t owe taxes, you may be eligible to claim a refund of withheld income through the ACTC.
Can I still get the CTC if I don’t owe taxes?
Yes—you just need to file. If you’re a low-income family or self-employed, and your tax credit amount exceeds your tax liability, you can still claim a refund.
Example:
- You qualify for a $2,000 credit
- Your tax bill is only $800
- You’ll get a $1,200 refund through the refundable credit
You’ll need to show at least $2,500 in earned income to qualify for that refund, even if you're not required to file.
Further Reading: Learn how to claim the additional child tax credit for qualifying children
What Should Families Expect for Their Child Tax Credit Refund?
When will I get my child tax credit refund?
Here’s the catch: even if you file early, child tax credit payments last. The IRS usually holds refunds until mid-February, especially if you claim the child tax credit and the child and dependent care credit.
This delay applies if you claim:
- The Additional Child Tax Credit
- The Earned Income Tax Credit
So, don’t rely on this refund to cover January expenses.
How much refund should I expect in 2025?
It depends on your income tax, dependents, and earnings. If you qualify for the full amount, you could see a child tax credit refund of up to $1,700 per qualifying child.
To maximize your refund:
- Use a trusted tax professional
- Review all 2024 tax changes
- Confirm eligibility with Schedule 8812
If your child qualifies and you meet all the additional child tax credit requirements, this could be one of the most popular credits to claim in the 2024–2025 tax seasons.
Key Takeaways
- You can claim up to $2,000 per qualifying child with the 2025 Child Tax Credit under current tax law.
- Up to $1,700 of the credit amount is refundable through the Additional Child Tax Credit.
- To qualify, your child must meet specific IRS rules including age, residency, and Social Security requirements.
- You must file a tax return with Schedule 8812 to claim the child tax credit and refund.
- The tax credit amount may drop after 2025 if Congress doesn't extend the expanded child tax credit provisions.
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