The Child Tax Credit (CTC) continues to be a vital tax benefit for low- and middle-income families across the United States. Approximately 48 million households benefit from the program, which provides crucial financial support for raising children, covering essentials like food, housing, and education.
For the 2025 tax year, the maximum credit remains $2,000 per qualifying child, with $1,700 refundable for families with little or no tax liability. This refundable portion ensures that even families without a significant tax bill can receive financial assistance.
Eligibility and Income Thresholds
The income limits for claiming the CTC are unchanged for 2025:
- Married couples filing jointly: Up to $400,000 before credit reductions.
- Single filers and other statuses: Up to $200,000 before reductions.
To qualify, families must meet specific criteria, including the child’s age, residency, and relationship to the taxpayer.
Primary Eligibility Rules
To claim the Child Tax Credit, ensure the following criteria are met:
- Child’s Age: Under 17 years old by the end of the tax year.
- Relationship: Biological, adopted, or stepchild, or a direct descendant (e.g., grandchild, sibling).
- Residency: Must live with the taxpayer for over half the tax year, with some exceptions.
- Economic Dependency: The child cannot provide more than half of their financial support.
- Social Security Number (SSN): A valid SSN must be issued by the tax filing deadline.
- Joint Filing Restrictions: The child cannot file a joint return, except for refunds.
- Citizenship: Must be a U.S. citizen, national, or permanent resident.
How to Claim the Credit
Eligible taxpayers should complete the CTC worksheet provided with the IRS Form 1040 or 1040-SR instructions. This step ensures an accurate calculation of the credit amount, which can then be applied directly to the tax return. Depending on your financial situation, the credit will either reduce your tax liability or increase your refund.