
In 2025, Americans will file their taxes for the year 2024, and many might be eligible for a child tax credit. This credit is available to parents and guardians of children under 17.
Why is it important? Well, the child tax credit has been around since 1997 and helps lift millions of children out of poverty. Research shows that when it was expanded during the pandemic, it reduced food insecurity and helped families meet their basic needs. However, when it ended in 2022, 3.2 million American children fell below the poverty line.
So, what’s the deal with the child tax credit for 2025? When you file your 2024 tax returns, the maximum credit is $2,000 per qualifying child. That means if you have a child under 17 who lives with you and depends on you, you could get up to $2,000 back in taxes.
However, here’s the catch: the credit is refundable, which means you can get money back even if you don’t owe any taxes. The refundable part is $1,700 per qualifying child.
Now, here are the requirements for qualifying children:
- They need a Social Security number.
- Be under 17 at the end of 2024.
- Live with you for more than half the year.
- Not contribute more than half of their own expenses.
Additionally, the credit starts to phase out if your income exceeds $200,000 for single filers or $400,000 for joint filers.
So, there you have it! The child tax credit for 2025 is a chance for parents and guardians to get some extra money back in taxes. It’s a great way to help families make ends meet and support their children’s future.
The child tax credit amount for the 2023 tax year is the same as it was last year, when Americans filed taxes for the 2023 tax year. For the 2023 tax year, the 2022 child tax credit was also $2,000 per child.
However, in 2026, the value of the child tax credit will drop to just $1,000 per child!