In the year 2025, American families will be able to claim the child tax credit when filing their 2024 tax returns. This benefit is intended for parents and legal guardians of minors who meet certain age and residency prerequisites. Since its implementation in 1997, it has established itself as a key tax relief for millions of families.
The Child Tax Credit program continues to deliver up to $2,000 for each qualifying minor, as long as the child is under 17 years of age at the close of the tax year. Of this amount, $1,700 is refundable, allowing families to receive a check even if they do not have a high tax liability.
Other requirements for the 2025 child tax credit
The children must also have a valid Social Security number and reside with the taxpayer for more than half of the tax year, so that everything is in order for the household to claim the child tax credit.
The full benefit is available to families with adjusted gross incomes up to $200,000 on individual returns and $400,000 on joint returns. Those with higher incomes will see a proportional reduction in the total credit amount.
The credit for 2024 does not present changes compared to 2023, when it was also $2,000 per qualified minor. However, this contrasts with the temporary expansion of the credit during the pandemic, under the American Rescue Plan, which provided up to $3,600 per child. This measure expired in 2022, resulting in a significant increase in child poverty rates.
In 2026, without legislative changes, the credit will be reduced to $1,000 per child, which could negatively impact families’ tax refunds.
Important dates to file taxes: don’t miss it
Each year, the IRS estimates that billions of dollars in tax credits, including the Child Tax Credit, go unclaimed. This occurs primarily due to a lack of knowledge or limited access to tax preparation resources among eligible families.
The Internal Revenue Service (IRS) will enable the tax filing system by January 29, 2025, while the Free File program will be available starting January 12. The general deadline to file returns is April 15, unless an extension is obtained.
Don’t forget that an extension to file does not extend the deadline to pay taxes owed. Any outstanding balance after April 15 will incur interest and penalties.
Child tax credits in other years in numbers
During the COVID-19 pandemic, the Child Tax Credit was temporarily expanded under the American Rescue Plan. This resulted in monthly payments of up to $300 per child under 6 years old and $250 per child between 6 and 17 years old, with a total benefit of up to $3,600 per qualifying child. This measure helped reduce child poverty in the US by 46%, according to Census Bureau estimates.
In 2021, expanded credit payments prevented 3.7 million children from falling into poverty. However, when the expansion expired in 2022, child poverty rates rose sharply from 5.2% to 12.4%, erasing much of the progress made.
An Urban Institute study found that approximately 92% of eligible families claimed the credit in 2021. However, 8% of households, primarily those with low incomes and without access to tax preparation services, did not take advantage of the benefit.
In its first year, the Child Tax Credit provided a maximum of $400 per qualifying child. By 2001, this amount increased to $600 and has continued to increase periodically since then.
Statistically, 67% of families use it to buy food, while 39% invest it in paying for housing, whether in rent or mortgage. On the other hand, 29% also use it to pay for basic services such as electricity or water.
