The Child Tax Credit (CTC) for tax year 2025 in the United States provides up to $2,000 per qualifying child, with up to $1,700 refundable under certain conditions.
Important requirements include household income limits of $200,000 for single filers and $400,000 for married couples filing jointly. Additionally, children must be under the age of 17. To claim the credit, you must use Form 1040 and, if applicable, Schedule 8812.
How to access the CTC: It is not easy, but it is possible
The refundable portion requires a minimum earned income of $2,500. According to current regulations, this limits the benefit for families who do not have sufficient earned income.
The CTC lowers tax debt for families with dependents. In 2025, the maximum credit is $2,000 per child, with $1,700 refundable if income requirements are met. This allows you to receive a refund even if you do not owe taxes, as long as you have documented earned income.
To qualify, the child must be under the age of 17, live with the taxpayer for more than half of the year, and have a valid Social Security number. Dependency and citizenship for minors are also mandatory requirements.
The CTC requires the child to be the taxpayer’s biological, adopted child, brother, or grandson. You must provide less than half of your own support to be classified as a dependent. The taxpayer must have a Social Security or ITIN and not rely on another filer.
The credit reduction is based on family income: $50 less for every $1,000 over $200,000 (for singles) or over $400,000 for married people. This cuts the benefit by $240,000 and $440,000, respectively.
Reimbursable amounts and calculations
The Additional Child Tax Credit (ACTC) allows you to receive up to $1,700 for each child. It is calculated as 15% of income greater than $2,500, with a maximum of $1,700. To receive the full amount, income must exceed $13,834, according to IRS formulas.
Schedule 8812 is required to claim ACTC. TurboTax and IRS Free File simplify the process, particularly for those with low incomes. Refunds will be delayed until mid-February if this credit is included.