What is the Child Tax Credit amount for 2025?

by | May 9, 2025 | Individual Taxes, Tax Credits

Here’s what HIVE AI had to say about “What is the Child Tax Credit amount for 2025?”:

Child Tax Credit Amount for 2025

For tax years 2018 through 2020 and 2022 through 2025, the Child Tax Credit (CTC) is $2,000 per qualifying child, with $1,500 being refundable as the Additional Child Tax Credit (ACTC). IRS IRM 4.19.14 Refundable Credits Strategy

Qualifying Child Requirements

To be eligible for the Child Tax Credit in 2025, a qualifying child must meet several requirements:

Each qualifying child must have a valid Social Security number that was issued before the due date of the tax return (including extensions). The child must also be a United States citizen or resident alien, and must be under age 17 at the end of the calendar year. IRS IRM 4.19.14 Refundable Credits Strategy

Additional Child Tax Credit (Refundable Portion)

For 2025, the maximum additional child tax credit amount (the refundable portion) is $1,700 for each qualifying child. IRS – Form 1040-ES: Estimated Tax for Individuals This is an increase from previous years, as the refundable portion has been adjusted over time.

Income Phaseout Thresholds

The total of Child Tax Credit (CTC) and Other Dependent Credit (ODC) is phased out by $50 for each $1,000 (or fraction thereof) that your Adjusted Gross Income (AGI) exceeds $400,000 in the case of a joint return, or $200,000 for all other filing statuses. IRS IRM 21.6.3 Credits

You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit. IRS – Child Tax Credit

How to Claim the Credit

You can claim the Child Tax Credit by entering your children and other dependents on Form 1040, U.S. Individual Income Tax Return, and attaching a completed Schedule 8812, Credits for Qualifying Children and Other Dependents. If you receive a letter from the IRS about your credit, you should respond appropriately, and if your claim is denied, there are procedures to follow to appeal the decision. IRS – Child Tax Credit

Historical Context

The Child Tax Credit has undergone several changes over the years:

Section 24(a) originally allowed a taxpayer a tax credit of $1,000 per child. Section 24(b)(3) provides that the credit available under section 24(a) is limited to the taxpayer’s tax liability (as calculated before the credit). Dawson U.S. Tax Court Opinions: Neil G. & Peggy J. Heilman

The child tax credit is described in section 24, which provides that a taxpayer may claim a credit against Federal income tax of up to $1,000 for each qualifying child of the taxpayer. For purposes of section 24(a) the term “qualifying child” means a qualifying child of the taxpayer, as defined in section 152(c). A qualifying child for purposes of section 24 is a “qualifying child” as defined in section 152(c) who has not attained the age of 17. Dawson U.S. Tax Court Opinions: Joyce Coultman Dawson U.S. Tax Court Opinions: Joyce Coultman

The Tax Cuts and Jobs Act increased the amount to $2,000 per qualifying child, which remains in effect through 2025.

Conclusion

For the 2025 tax year, the Child Tax Credit remains at $2,000 per qualifying child under age 17, with up to $1,700 of that amount being refundable as the Additional Child Tax Credit. The credit begins to phase out for taxpayers with AGI exceeding $200,000 ($400,000 for married filing jointly).

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