$3,600 & $3,000 Child Tax Credit in 2025 – What Parents Need to Know
In a year marked by economic uncertainty and rising living expenses, the Child Tax Credit (CTC) remains a vital source of financial relief for millions of American families. While the temporarily expanded CTC of 2021 has not been renewed in 2025, families can still receive up to $2,000 per child under 17, with a portion of that being refundable. Whether you’re filing as a single parent or a married couple, understanding how the 2025 CTC works can help you reduce your tax burden or even increase your refund.
Child Tax Credit in 2025: What Has Changed?
In 2021, the American Rescue Plan temporarily increased the CTC to $3,600 for children under 6 and $3,000 for ages 6 to 17, with half the credit paid monthly. However, this expansion expired after 2021, and Congress has not reauthorized it as of 2025.
Now, the standard Child Tax Credit is back to $2,000 per qualifying child. Of that, up to $1,700 can be refundable through the Additional Child Tax Credit (ACTC) for those with low-to-moderate income.
CTC 2025 At a Glance
| Aspect | Details |
|---|---|
| Maximum Credit Per Child | Up to $2,000 |
| Refundable Portion (ACTC) | Up to $1,700 (if income is $2,500 or more) |
| Age Requirement | Child must be under 17 as of Dec 31, 2025 |
| Income Phase-Out Starts | $200,000 (single), $400,000 (married filing jointly) |
| Payment Timing | Claimed as part of tax return — no monthly payments |
| Claim Form | IRS Form 1040 + Schedule 8812 |
| Deadline to File | April 15, 2025 |
| Official Info Source | IRS Child Tax Credit Page |
Who Qualifies for the Child Tax Credit in 2025?
To be eligible for the CTC, both parents and children must meet IRS requirements:
Parent/Guardian Requirements
- Must file a federal income tax return (Form 1040)
- Income must fall below phase-out thresholds
- Must earn at least $2,500 to qualify for the refundable portion (ACTC)
- Must live in the U.S. for at least 6 months
Child Requirements
- Must be under 17 by December 31, 2025
- Must be a U.S. citizen, national, or resident alien with a valid SSN
- Must be your biological child, stepchild, adopted child, foster child, sibling, grandchild, or niece/nephew
- Must have lived with you for at least 6 months
- Must be claimed as a dependent
- Cannot provide more than half of their own financial support
Income Limits for Full CTC
| Filing Status | Income Limit for Full Credit | Phase-Out Starts At |
|---|---|---|
| Married Filing Jointly | Up to $400,000 | Over $400,000 |
| Single / Head of Household | Up to $200,000 | Over $200,000 |
| Married Filing Separately | Up to $200,000 | Over $200,000 |
If your income exceeds these limits, the CTC is reduced by $50 for every $1,000 above the threshold.
How and When to Claim the CTC
There are no monthly CTC payments in 2025. Instead, the credit is applied when you file your tax return in early 2025 for the 2024 tax year.
Here’s how to claim it:
- File IRS Form 1040
- Attach Schedule 8812 to calculate and claim the CTC/ACTC
- Include SSNs for each eligible child
- Ensure your earned income is at least $2,500 to access the refundable portion
- File by the tax deadline: April 15, 2025
What If You Don’t Owe Taxes?
Even if your tax liability is zero, you may still receive up to $1,700 per child as a refund through the Additional Child Tax Credit, provided you meet the income and eligibility requirements.
This makes the CTC not just a tax reduction tool but also a source of direct cash for working families.
Additional Tips to Maximize Your Credit
- Use IRS Free File if your income is below $73,000
- Consider a tax professional if you have multiple dependents or complex finances
- Keep documentation of residency and support for each child
- Make sure all children’s SSNs are valid and issued before the filing deadline
Why the CTC Matters More in 2025
With inflation continuing to impact grocery bills, childcare, and housing costs, the Child Tax Credit is more crucial than ever. While the 2021 enhancements offered higher support, the current CTC can still provide thousands in tax relief — especially for lower-income households.
For example:
- A family with two children under 17 earning less than the phase-out limit could receive up to $4,000 in total credits.
- If they owe no taxes, they could still receive $3,400 back in refunds via the ACTC.
FAQs
No. That was a temporary expansion in 2021 and hasn’t been renewed.
Up to $2,000 per child, with a maximum of $1,700 refundable if you earn at least $2,500.
The credit is issued when your 2024 tax return is processed — typically between February and April 2025.
You can claim that child on your 2024 return filed in 2025, as long as they meet the age and SSN requirements.
