The upcoming tax season will bring a significant opportunity for American families with children under age 17: a child tax credit (CTC) up to $1,700, which is refundable. This benefit, administered by the IRS, is designed to alleviate the tax burden and offer essential economic support, especially in a context of rising costs of living.
The CTC for fiscal year 2024, to be filed in 2025, has a maximum amount of $2,000 per qualifying child. Of this total, up to $1,700 is refundable, even if the taxpayer owes no taxes. This means low- and moderate-income families can receive the credit as a direct payment, a measure intended to address the rising costs of parenting.
The program applies to children under 17 years of age at the end of the fiscal year, who must have a Social Security number (SSN) valid. Additionally, they must meet additional criteria related to residency, relationship, and financial contributions, ensuring that support reaches those who need it most.
Eligibility criteria for the CTC stimulus check
To receive the CTC, the taxpayer must file their tax return in 2025 and meet the following requirements:
- The child must live with the applicant for more than half of the year.
- The child cannot provide more than 50% of his or her own support.
- The taxpayer and child must be US citizens, nationals, or residents.
- Modified adjusted gross income (MAGI) must not exceed $200,000 for individuals, or $400,000 on joint returns.
He IRS details that, for those who exceed these income thresholds, the value of the credit gradually decreases, until it is eliminated.
The application process to claim the CTC
To access the credit, applicants must include qualifying children in the Form 1040, along with Schedule 8812, which calculates the eligible amount. It is essential to carefully review all the information presented, since errors can cause delays in the issuance of credit.
He IRS provides digital tools, such as “Where’s My Refund?”, for credit monitoring, although refunds that include CTC are typically available in mid-February due to additional reviews.
Although he child tax credit current represents significant support, its future remains uncertain. If legislative changes are not implemented, the amount of the refundable credit could be reduced to $1,000 in 2026, while income limits will return to pre-2017 levels.
Congress is currently evaluating proposals to extend or increase the CTC. According to Senator J.D. Vance: “My goal would be to increase the credit on the condition that an agreement is reached with Congress”. These discussions underscore the importance of the program as a tool to reduce economic inequality and encourage investments in education and child well-being.
The period to file tax returns for the 2024 tax year just begun in January 2025 and will last until April of the same year. During this time, parents and guardians will need to gather the necessary documentation to ensure eligibility and maximize the benefit.
