Ah, taxes, that’s a topic that makes us all frown, but today we’re going to talk about a benefit that is a great help to American taxpayers: it’s the child tax credit. If you have little ones at home (or dependents who count as such), this will interest you. Let’s talk without strange technicalities, without boring nonsense. Ready to stop the IRS from taking all your money?
First, what is this about? Well, the government pats you on the back and says, “Here, for raising beautiful little humans.” That’s basically the child tax credit, a benefit that’s been around since 1997.
Why does the Child Tax Credit exist?
In reality, this tax benefit was originally like a modest discount coupon, but over the years it has grown. Right now, in 2025, you can subtract up to $2,000 per child from what you owe in taxes.
Are there any traps that you don’t know about? Not all of that amount will be returned to you in cash if you pay more. Of those $2,000, only $1,700 are “refundable” (that is, if the IRS owes you money, it will be added to your refund). The rest simply reduces your debt. But be careful: this is only until 2025. If Congress does not renew it, in 2026 it will again be $1,000 fixed and without refund.
Are you a candidate? Let’s check the requirements
Here comes the important thing: do you meet the vibes that the IRS is looking for? To start, your mini dependent must be:
- Under 17 years old at the end of 2024 (if you turn 17 in December, it does count!).
- Live with you at least half of the year (if he spent six months at grandma’s house, it does not apply).
- Not supporting yourself (you cover more than 50% of your expenses: food, school, children’s Netflix… whatever).
- Have papers in order: US citizen, legal or national resident, and a valid Social Security number before filing your taxes.
And what counts as a “child”?
Here the IRS gets flexible: not just biological or adopted children. It also applies to siblings, half-siblings, stepchildren, grandchildren, nephews… even if you are their legal guardian and meet the requirements! Of course, no distant cousins or pets (I know, Fido is part of the family, but the IRS is not on that wavelength).
Do you earn too much to qualify for the CTC?
Here is the detail that hurts: credit is not the same for everyone. If you are single and earn more than $200,000 a year, or if you are a couple, and together you exceed $400,000, the amount is reduced by $50 for every $1,000 you go over the limit.
If you are single and earn $210,000, you went over $10,000. That’s 10 x $50 = $500 less per child. That is, instead of $2,000, you would receive $1,500. If you earn $250,000, that’s $50,000 above the limit: 50 x $50 = $2,500 less. But don’t worry, credit cannot be negative. If they reduce it to zero, you simply don’t receive it.
And that’s it regarding the CTC money you might qualify for, and all the requirements. If you have any question, you can check the Child Tax Credits section on the IRS’ official website.
