As tax season 2025 kicks off in the U.S., families with qualifying children can now apply for the Child Tax Credit (CTC) to receive financial assistance from the Internal Revenue Service (IRS).
For those who follow the IRS guidelines for quick processing, refunds may arrive by the end of February—especially if the federal return is submitted early in the season.
What Is the Child Tax Credit and How Much Can You Receive?
The Child Tax Credit for 2025 applies to U.S. households with eligible dependents under 17 years old for the 2024 tax year. Families could receive up to $2,000 per child through this credit.
However, the credit is partially non-refundable, meaning that if the total credit exceeds the tax liability, the maximum refundable amount is limited to $1,700.
For those with low tax liabilities, the portion of the credit that can be refunded changes its name to the Additional Child Tax Credit (ACTC), which is the $1,700 refundable amount.
Child Tax Credit Limits and Refunds
| Type of Credit | Maximum Amount | Refundable Portion |
|---|---|---|
| Child Tax Credit | Up to $2,000 per child | Non-refundable up to $1,700 |
| Additional Child Tax Credit | $1,700 (if tax liability is too low) | Fully refundable |
Who Qualifies for the Child Tax Credit?
To qualify for the Child Tax Credit, several conditions must be met:
- The child must be under 17 as of the end of 2024.
- The child must be listed as a dependent on the filer’s return.
- The child must be a U.S. citizen, U.S. national, or a U.S. resident alien.
- The child must have a valid Social Security Number (SSN) for employment purposes.
Income Limits for the Child Tax Credit
To claim the full Child Tax Credit, there are income thresholds based on your adjusted gross income (AGI):
- Single Filers: Must have an AGI of less than $200,000.
- Married Couples Filing Jointly: Must have an AGI of less than $400,000.
For every $1,000 over these thresholds, the credit is reduced by $50.
How to Apply for the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)
To apply for the Child Tax Credit or the ACTC, you will need to complete the Form 1040 for your federal tax return and include the Schedule 8812. This is the form used specifically to claim credits for your children.
How to Receive Your Refund Faster
The IRS recommends that taxpayers file electronically and opt for direct deposit to receive refunds in as little as three weeks.
The IRS issues over 90% of refunds within 21 days when direct deposit and e-filing are used. Direct deposit eliminates the risk of lost, stolen, or delayed checks.
Speeding Up Your Refund
To ensure quick processing, e-file your return and choose direct deposit. The IRS also notes that ACTC refunds will not be issued before mid-February.
How to Check the Status of Your Refund
To track your refund status, use the Where’s My Refund? portal available on the IRS website or the IRS2Go app. These tools allow you to monitor the progress of your refund in real-time.
Tax season officially began on January 27, 2025, and most filers have until April 15, 2025 to submit their federal tax returns.
The Child Tax Credit (CTC) for tax season 2025 offers a substantial financial boost to families with eligible children. By understanding the application process, income limits, and options for quick refunds, you can maximize your benefit.
Ensure you meet the eligibility requirements, submit the necessary forms, and follow the IRS guidelines for a timely and accurate refund.
FAQs
When will I receive my Child Tax Credit refund in 2025?
If you file your tax return electronically and choose direct deposit, the IRS aims to issue refunds within three weeks, but the ACTC portion will be issued after mid-February.
How do I apply for the Child Tax Credit?
To apply, you must complete your Form 1040 and include Schedule 8812 to claim the credit for children.
Who is eligible for the Child Tax Credit?
To be eligible, the child must be under 17 at the end of 2024, a U.S. citizen or resident, and must have a valid Social Security Number. They must also be listed as a dependent on your tax return.