Honk News – The Child Tax Credit (CTC) helps low-income families, supporting approximately 48 million households with financial aid for essential expenses like food, housing, and education for their children.
Eligible adults with dependents under 17 can receive the CTC as a non-refundable tax payment.
The IRS recently announced the child tax credit for fiscal year 2025, applicable to taxes filed in April 2026. This non-refundable tax credit can lower your tax bill dollar for dollar, with a maximum limit of $2,000 and a refundable portion of up to $1,700.
The income threshold for qualifying for the Child Tax Credit in 2025 stays at $400,000 for married couples filing jointly and $200,000 for other filers.
Requirements for Tax Credit
To claim it on your federal tax return, fill out the standard Child Tax Credit Worksheet available in the instructions for Form 1040 or 1040-SR.
Eligibility requires meeting several criteria, including the child’s age, the applicant’s relationship to the child, and income conditions.
- A qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).
- The qualifying child must be under the age of 17 at the end of the tax year.
- Meet relationship and residency tests for a uniform definition of qualifying child.
- Not providing more than half of their own support for the tax year.
- Have lived with you for more than half of the tax year, for exceptions for birth or death during the year, temporary absences, kidnapping or disappearance, or children of divorced or separated parents.
- Be claimed as a dependent on your return.
- Do not file a joint return for the year (or file a joint return only to claim a refund of withheld or estimated taxes).
- Be a U.S. citizen, U.S. national or U.S. resident alien
- You must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions).