Many families in the United States rely on the Child Tax Credit (CTC) to help ease their financial burden. This tax benefit provides up to $2,000 per eligible child, helping parents offset taxes owed or receive a refund. However, with current laws set to expire after 2025, families must stay updated on possible changes and ensure they claim the credit before any modifications take effect.
In this article, we’ll break down how the Child Tax Credit works, who qualifies, potential legislative changes, and how to claim your refund before it’s too late.
What is the Child Tax Credit (CTC)?
The Child Tax Credit is a federal tax benefit designed to assist families by reducing their tax liability for each qualifying child. Currently, the maximum credit per child is $2,000, but without new legislation, this amount may drop to $1,000 per child in 2026.
The CTC is partially refundable, meaning that even if you don’t owe taxes, you may still receive a portion of the credit as a refund. This helps families receive extra financial support during tax season.
Who is Eligible for the $2,000 Child Tax Credit?
To qualify for the Child Tax Credit, families must meet these requirements:
- Child Relationship: The child must be a biological child, stepchild, adopted child, foster child, or a close relative (such as a grandchild or sibling).
- Residency: The child must have lived with the taxpayer for at least half of the tax year.
- Age Limit: The child must be under 17 years old at the end of the tax year.
- Dependency Status: The child must be claimed as a dependent on the taxpayer’s tax return.
Income Limits:
- Single filers: Must earn $200,000 or less to receive the full credit.
- Married joint filers: Must earn $400,000 or less for full credit eligibility.
- Above these limits? The credit amount is gradually reduced for higher earners.
If you meet these qualifications, you may be eligible to receive up to $2,000 per child in tax relief!\
Will the Child Tax Credit Change in 2025?
As of now, the Child Tax Credit is set to expire after 2025, which could lead to:
- A reduction from $2,000 to $1,000 per child starting in 2026.
- Lower income phase-out limits, affecting high earners.
- A potential decrease in refundable benefits for families with lower tax liabilities.
In 2024, a proposed bill aimed to increase the refundable portion to $1,900 and adjust the credit for inflation. However, since the Senate has not approved this, the future of the CTC remains uncertain. Families should stay informed and claim the credit while it is still available at its current rate.
How to Claim the Child Tax Credit (CTC) on Your Tax Return
To claim the Child Tax Credit, you must file a federal tax return using one of the following forms:
- Form 1040 – The standard tax return for individuals.
- Form 1040-SR – A tax return form designed for seniors (65+ years old).
- Schedule 8812 – Required for claiming the Additional Child Tax Credit (ACTC), which allows some families to receive up to $1,700 as a refundable credit.
Missed Claiming the CTC? You Can File an Amended Return!
If you forgot to claim the Child Tax Credit in previous years, you can still get your refund by filing an amended tax return (Form 1040-X) before the deadlines:
| Tax Year | Deadline to File for CTC |
|---|---|
| 2023 | April 15, 2027 |
| 2022 | April 15, 2026 |
| 2021 | April 15, 2025 |
If you’ve already filed your taxes but didn’t claim the credit, file an amendment as soon as possible to get your refund!
Why Families Should Take Advantage of the CTC Now
The Child Tax Credit has helped millions of families reduce their tax burdens and receive extra financial support. However, with uncertainty surrounding future legislation, families should claim the credit while it is still at $2,000 per child.
By ensuring you meet eligibility requirements, filing your tax return correctly, and staying informed about potential changes in 2025, you can maximize your refund and provide greater financial stability for your family.
