The Child Tax Credit is a federal tax benefit designed to assist families with the costs of raising children. For 2025, eligible taxpayers can claim up to $2,000 per qualifying child under age 17, with up to $1,700 potentially refundable through the Additional Child Tax Credit (ACTC) .
Eligibility Criteria
To qualify for the Child Tax Credit, you must meet the following requirements:
- Age: The child must be under 17 at the end of the tax year.
- Relationship: The child must be your son, daughter, stepchild, foster child, sibling, stepsibling, or a descendant of any of these.
- Residency: The child must have lived with you for more than half of the tax year.
- Support: You must have provided more than half of the child’s financial support during the year.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien, and have a valid Social Security number.
- Income Limits: The credit begins to phase out at $200,000 for single filers and $400,000 for married couples filing jointly. For every $1,000 over these thresholds, the credit is reduced by $50 .
Refundable Portion: Additional Child Tax Credit (ACTC)
If the amount of your Child Tax Credit exceeds your tax liability, you may be eligible for the Additional Child Tax Credit, which allows you to receive up to $1,700 per qualifying child as a refund. To qualify, you must have earned income of at least $2,500 .
How to Claim the Child Tax Credit
- Prepare Necessary Documentation: Ensure you have Social Security numbers for all qualifying children and documentation proving their residency and your relationship to them.
- Complete Tax Forms: Fill out Form 1040 and attach Schedule 8812 to calculate and claim the credit.
- Submit Your Tax Return: File your tax return by the deadline, ensuring all information is accurate to avoid delays.
Summary Table
| Criteria | Details |
|---|---|
| Maximum Credit | $2,000 per qualifying child |
| Refundable Portion (ACTC) | Up to $1,700 per qualifying child |
| Income Phase-Out Thresholds | $200,000 (single filers), $400,000 (married filing jointly) |
| Minimum Earned Income | $2,500 to qualify for the refundable portion |
| Required Forms | Form 1040 and Schedule 8812 |
The Child Tax Credit is a valuable benefit that can significantly reduce your tax liability and provide additional financial support.
By understanding the eligibility requirements and properly filing your tax return, you can ensure you receive the full benefit you’re entitled to.
FAQs
Can I claim the Child Tax Credit for a child born in 2025?
Yes, as long as the child is born before the end of the tax year and meets all other eligibility criteria.
What if my income exceeds the phase-out threshold?
If your income exceeds the threshold, the credit amount is reduced by $50 for each $1,000 over the limit until it phases out completely.
Can I claim the credit if I live abroad?
Yes, U.S. citizens living abroad can claim the credit if they meet all eligibility requirements and do not exclude their income under the Foreign Earned Income Exclusion .