What You Need To Know About Child Tax Credit Benefits
Despite rumblings on social media about potential new Child Tax Credit payments, as of March 2025, Congress has not passed any legislation modifying the rules for the current tax cycle. For your 2024 tax return (filed in 2025), the Child Tax Credit remains a valuable tax benefit worth up to $2,000 per qualifying child. This credit is specifically designed to help American parents offset the costs of raising children by reducing their tax liability dollar-for-dollar.
The Child Tax Credit is claimed by over 90% of American families with children, making it one of the most widely used tax benefits. For many families, it provides essential financial relief during tax season, with the average benefit being approximately $2,390 per household with children.
Understanding this credit fully can make a significant difference in your tax situation, potentially reducing what you owe or increasing your refund. Let’s dive into exactly how this credit works and how you can claim it.
What is the Child Tax Credit?
The Child Tax Credit (CTC) is a federal tax benefit designed to help families with the financial burden of raising children. Unlike tax deductions that merely reduce your taxable income, the CTC directly reduces your tax liability dollar-for-dollar.
For the 2024 tax year (returns filed in 2025), the credit is worth up to $2,000 for each qualifying child under age 17.
What’s particularly helpful is that up to $1,700 of this credit is refundable through the Additional Child Tax Credit (ACTC), meaning you can receive this portion even if it exceeds the taxes you owe.
The CTC has two components:
- The nonrefundable portion that can reduce your tax liability to zero
- The Additional Child Tax Credit (ACTC), which is the refundable portion allowing you to receive up to $1,700 per child as a refund even if you owe little or no tax
How Much Can You Get on the Child Tax Credit for 2024?
For the 2024 tax year (filed in 2025), the Child Tax Credit remains at $2,000 per qualifying child under 17, with up to $1,700 of that amount being refundable through the Additional Child Tax Credit.
This represents an increase in the refundable portion from $1,600 in 2023 to $1,700 for 2024, giving families the potential to receive more money back even if they owe little or no tax.
The credit begins to phase out for higher income earners.
For 2024, the full credit is available to married couples filing jointly with modified adjusted gross income (MAGI) up to $400,000 and single filers with MAGI up to $200,000.
Above these thresholds, the credit decreases by $50 for each $1,000 (or fraction thereof) of income over the limit.
For example, a family with two qualifying children and income below the threshold would qualify for a $4,000 credit ($2,000 per child).
But if a single parent with two children has a MAGI of $210,000, their credit would be reduced by $500 ($50 × 10), since they’re $10,000 over the threshold, resulting in a $3,500 total credit instead of $4,000.
Child Tax Credit Payment Schedule
No advance payments are currently scheduled for 2025, unlike the temporary program in 2021 that provided monthly installments. The current credit system requires claiming the full amount when filing your 2024 tax return in 2025.
For reference, the 2021 advance payment schedule was:
| Payment Month | Payment Date |
|---|---|
| July | 7/15/21 |
| August | 8/13/21 |
| September | 9/15/21 |
| October | 10/15/21 |
| November | 11/15/21 |
| December | 12/15/21 |
What to Do If You Are Missing Payments
If you believe you qualified for the Child Tax Credit in a previous year but did not receive it, you can:
- File or amend your tax return for that year (if still within the allowable timeframe)
- Request a payment trace with the IRS by completing Form 3911, Taxpayer Statement Regarding Refund
- Contact the IRS directly regarding your missing credit
How to qualify for the Child Tax Credit
To qualify for the Child Tax Credit, your child must meet several specific criteria:
- The child must be under 17 years old at the end of the tax year
- You and the child must have a valid Social Security number issued before your tax return’s due date
- Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these relatives
- The child must have lived with you for over half of the year
- You paid for at least half of the child’s needs last year
- The child did not pay for more than half of their own living expenses, such as food, housing, clothing, education, and other basic needs
- Be claimed as a dependent on your tax return
- Be both a U.S. citizen, U.S. national, or U.S. resident alien
Income limitations also apply. The credit is available to taxpayers at various income levels, though it begins to phase out for higher earners. For 2024, the full credit is available to married couples filing jointly with modified adjusted gross income (MAGI) up to $400,000 and single filers with MAGI up to $200,000. Above these thresholds, the credit decreases by $50 for each $1,000 (or fraction thereof) of income over the limit.
The Additional Child Tax Credit Program
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit that allows you to get money back even if you don’t owe any taxes. This can be particularly beneficial for low to moderate-income families.
For 2024, the ACTC allows up to $1,700 per qualifying child to be refundable. That’s 85% of the available $2,000 per child, and if you have three kids, it adds up to $5,100.
To be eligible, you must have earned income of at least $2,500 from work. Income from investments or other passive sources does not count.
The ACTC is calculated as the smaller of:
- 15% of your earned income above $2,500, or
- The unused portion of your Child Tax Credit (after it’s applied to your tax liability), up to $1,700 per qualifying child
Families with three or more qualifying children have an alternative calculation method that may result in a higher credit by comparing:
- The excess of Social Security and Medicare taxes paid over Earned Income Credit (if any)
- The standard ACTC calculation (15% of earnings over $2,500)
You can use whichever calculation gives the larger credit.
How to claim the Tax Child Credit
The IRS provides an online resource to help taxpayers determine if their child or dependent is eligible for the Child Tax Credit.
Otherwise, to claim the credit, you must file Form 1040 along with Schedule 8812 (Credits for Qualifying Children and Other Dependents). Most tax software will guide you through this process automatically.
If you qualify for the refundable portion through the Additional Child Tax Credit, you’ll need earned income of at least $2,500, and the refundable amount is calculated as 15% of your earned income above that threshold.
The Child Tax Credit is separate from the Child and Dependent Care Credit, which helps offset childcare expenses while you work. You may qualify for both credits, potentially increasing your tax savings significantly. Additionally, some states offer their own child tax credits at the state level, which can provide further financial relief for families.
The IRS cannot issue refunds for returns claiming the Additional Child Tax Credit before mid-February. This means if you file early and claim this credit, you may experience a delay in receiving your refund, typically until late February or early March.
Steps To File Your 2024 Child Tax Credit
Follow these steps to claim your Child Tax Credit for the 2024 tax year:
- Determine Your Eligibility: Verify that you and your children meet all the requirements outlined in the “Who Can Apply” section.
- Gather Required Documentation: Collect all necessary documents listed in the “Documents Required” section to support your claim.
- Choose the Correct Tax Form: You’ll need to file Form 1040 or 1040-SR to claim the Child Tax Credit.
- Complete Schedule 8812: This form is critical for claiming both the Child Tax Credit and the Additional Child Tax Credit. You’ll list each qualifying child’s information, calculate your total credit, and determine if you qualify for the refundable portion.
- Calculate Your Credit Amount: Determine the full amount you’re eligible for based on the number of qualifying children and your income.
- Enter Information Correctly on Your Tax Forms: On Form 1040, enter your Child Tax Credit amount on the appropriate line and attach the completed Schedule 8812.
- Claim the Additional Child Tax Credit (If Eligible): If your tax liability is less than your Child Tax Credit amount, complete the Additional Child Tax Credit section of Schedule 8812.
- Choose Your Filing Method: Options include electronic filing (fastest), tax preparation software, IRS Free File (for incomes below $73,000), using a tax professional, or paper filing (slowest).
- Maintain Records After Filing: Keep copies of your tax return and all supporting documentation for at least three years.
Documents Required For Child Tax Credit Application
When claiming the Child Tax Credit, it’s essential to have proper documentation to support your claim. While you typically don’t need to submit these documents with your tax return, you should keep them on file in case the IRS requests verification.
Identification Documents
- Social Security cards or verification letters (showing valid SSNs for each qualifying child)
- Birth certificates (original or certified copies for each qualifying child)
- Photo identification (driver’s license, passport, or state ID for the taxpayer)
Proof of Relationship Documents
- Birth certificates showing parental relationship
- Adoption papers for adopted children
- Court documents (guardianship papers, foster care placement records, custody orders)
- Marriage certificates and birth certificates (to establish step-relationships)
- Documentation for sibling relationships if claiming nieces, nephews, or siblings
Residency Verification Documents
- School records (report cards, enrollment forms showing address)
- Medical records showing your address as the child’s residence
- Childcare records (bills or receipts from daycare providers)
- Social service records from state or local benefit agencies
- Religious records showing address
- Utility bills showing service at your address throughout the year
- Lease agreements listing the child as an occupant
Income Verification Materials
- W-2 forms from all employers
- 1099 forms for self-employment, contract work, investments
- Pay stubs
- Bank statements showing income deposits
- Social Security benefit statements (Form SSA-1099)
- Alimony or child support documentation
- Investment income documentation
Special Documentation for Specific Situations
- For Divorced or Separated Parents: Form 8332 if the custodial parent is allowing the non-custodial parent to claim the child
- For Foster or Adopted Children: Placement authorization or final adoption decree
- For Non-Citizen Children with SSNs: Valid Social Security card and visa or green card documentation
When to Expect Your Child Tax Credit Refund
If you claim the Child Tax Credit and are due a refund, the timing depends on several factors:
- Electronic filing with direct deposit is the fastest method, with refunds typically processed within 21 days
- Paper filing can take 6-8 weeks or longer for processing
By law, the IRS cannot release refunds that include the Additional Child Tax Credit before mid-February. For the 2024 tax year, early filers claiming the ACTC should expect to receive their refunds around early March 2025 if they file electronically with direct deposit.
The IRS “Where’s My Refund” tool can help you track your refund status once you’ve filed.
What to expect for the Child Tax Credit in 2025 – 2026
Looking ahead, it’s important to note that 2025 marks a potential transition year for the Child Tax Credit. Unless Congress acts to extend the current provisions of the Tax Cuts and Jobs Act, the credit will automatically revert to $1,000 per child for the 2026 tax year, with lower income phase-out thresholds.
Understanding the Child Tax Credit rules and eligibility requirements can help ensure you receive the maximum benefit available to support your family’s financial well-being. If your tax situation is complex, consulting with a tax professional can help you navigate the process and identify additional tax benefits for which you might qualify.
Difference Between Child Tax Credit vs Child Care Credit
he Child Tax Credit and the Child and Dependent Care Credit are two valuable tax benefits for families, but they serve different purposes and have distinct eligibility requirements. Understanding the differences can help you maximize your tax benefits.
| Feature | Child Tax Credit | Child and Dependent Care Credit |
|---|---|---|
| Purpose | General tax relief for families raising children | Reimburses childcare expenses that enable you to work |
| Maximum Amount | $2,000 per qualifying child (2024) | Up to 35% of eligible expenses: maximum $3,000 for one dependent or $6,000 for two or more |
| Child Age Requirement | Under 17 at the end of the tax year | Under 13 at the end of the tax year (unless disabled) |
| Refundability | Up to $1,700 per child is refundable | Not refundable (only reduces tax liability) |
| Expense Requirement | No specific expense requirement | Must have paid work-related childcare expenses |
| Income Limits | Phases out starting at $200,000 (single) or $400,000 (married filing jointly) | Credit percentage decreases as income increases |
| Provider Documentation | Not required | Must provide care provider’s name, address, and tax ID |
| Employment Requirement | No employment requirement | Taxpayer (and spouse if married) must have earned income |
| Qualifying Dependents | Children only | Children and adult dependents who are physically/mentally incapable of self-care |
| Can Be Claimed Together | Yes, can claim both credits if you qualify | Yes, can claim both credits if you qualify |
The Child Tax Credit is designed to provide general financial support to families with children, while the Child and Dependent Care Credit is aimed specifically at reimbursing childcare expenses that enable parents to work.
This distinction is further highlighted by their age requirements: the Child Tax Credit applies to children under 17, whereas the Child and Dependent Care Credit is intended for children under 13, except in cases where a child is disabled.
Another key difference lies in the expense requirements. The Child Tax Credit does not require any specific expenses to be incurred, making it broadly accessible, while the Child and Dependent Care Credit mandates that qualifying childcare expenses be paid to a certified provider.
In addition, the nature of refundability varies between the two credits. A portion of the Child Tax Credit can be refundable through the Additional Child Tax Credit, meaning eligible families might receive it even if they don’t owe taxes, whereas the Child and Dependent Care Credit is strictly nonrefundable, serving only to reduce the amount of tax owed to zero.
Lastly, the documentation requirements differ with the Child and Dependent Care Credit necessitating detailed information about your care provider, including their Tax ID number, a level of scrutiny not required for the Child Tax Credit.
Can You Claim Both Credits?
Yes, you can claim both credits in the same tax year if you qualify for both. They are not mutually exclusive, and claiming one does not reduce the amount you can claim for the other. In fact, families with qualifying children and work-related childcare expenses should evaluate their eligibility for both credits to maximize their tax benefits.
For example, a family with two children under age 13 who paid $8,000 for childcare while the parents worked could potentially claim:
- Child Tax Credit: Up to $4,000 ($2,000 per child)
- Child and Dependent Care Credit: Up to $1,200 (20% of $6,000, depending on income)
By understanding and properly claiming both credits, families can significantly reduce their tax burden and potentially increase their refund, providing meaningful financial support for the costs of raising and caring for children.Play
Frequently Asked Questions About the Child Tax Credit
What are the child tax credit age limits?
For the 2024 tax year, qualifying children must be under the age of 17 at the end of the tax year (December 31, 2024).
This means your child must be 16 years old or younger on this date to qualify. Once a child turns 17, they are no longer eligible for the Child Tax Credit, though they may qualify for the Credit for Other
Dependents worth up to $500. The child’s age is determined as of the last day of the tax year, regardless of when you file your return.
What is the child tax credit maximum amount?
The maximum Child Tax Credit for the 2024 tax year is $2,000 per qualifying child.
Of this amount, up to $1,700 is refundable through the Additional Child Tax Credit (ACTC), meaning you can receive this portion even if you don’t owe any taxes.
This refundable amount increased from $1,600 in 2023 to $1,700 in 2024. The credit begins to phase out for single filers with modified adjusted gross income (MAGI) above $200,000 and married couples filing jointly with MAGI above $400,000.
What is the child tax credit deadline?
The deadline to claim the Child Tax Credit for the 2024 tax year is the standard tax filing deadline: April 15, 2025. If you request an extension, you’ll have until October 15, 2025, to file your return and claim the credit.
However, remember that an extension to file is not an extension to pay any taxes owed. Even with an extension, you must still pay any estimated taxes due by April 15, 2025, to avoid potential penalties and interest.
Can divorced parents both claim the Child Tax Credit for the same child?
No, only one parent can claim the Child Tax Credit for a particular child in a given tax year. Generally, the custodial parent (with whom the child lived for more than half the year) has the right to claim the credit.
However, the custodial parent can release their claim to the non-custodial parent by filing Form 8332, “Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.” In this case, the non-custodial parent must attach this signed form to their tax return to claim the credit.
How does the Additional Child Tax Credit differ from the standard Child Tax Credit?
The Additional Child Tax Credit (ACTC) is the refundable portion of the Child Tax Credit. While the standard Child Tax Credit can only reduce your tax liability to zero, the ACTC allows you to receive up to $1,700 per qualifying child as a refund, even if you owe little or no tax.
To qualify for the ACTC, you must have earned income of at least $2,500, and the credit is calculated as 15% of your earned income above this threshold. The ACTC is particularly beneficial for lower and moderate-income families who may not owe enough in taxes to use the full $2,000 Child Tax Credit otherwise.
Will the Child Tax Credit amount change in future tax years?
Yes, the Child Tax Credit amount is set to change after 2025 unless Congress takes action to extend the current provisions of the Tax Cuts and Jobs Act (TCJA). If no legislative action is taken, the credit will revert to $1,000 per qualifying child beginning in 2026, down from the current $2,000.
Additionally, the income thresholds at which the credit begins to phase out will drop significantly to $75,000 for single filers and $110,000 for married couples filing jointly, compared to the current thresholds of $200,000 and $400,000, respectively.
Can I claim the Child Tax Credit if my child doesn’t have a Social Security Number?
No, to claim the Child Tax Credit, each qualifying child must have a valid Social Security Number (SSN) that is issued before the due date of your tax return (including extensions). This SSN must be valid for employment in the United States.
Children with Individual Taxpayer Identification Numbers (ITINs) or Adoption Taxpayer Identification Numbers (ATINs) do not qualify for the Child Tax Credit, though they may qualify for the Credit for Other Dependents worth up to $500. This requirement differs from some other tax benefits and is strictly enforced by the IRS when processing Child Tax Credit claims.
