What is the child tax credit for the 2025 tax season?

Tax season isn’t just about paperwork and forms—it’s also a time when families can take advantage of helpful tax credits that lighten the financial load. One of the most talked-about benefits is the Child Tax Credit (CTC), which has provided relief to millions of parents over the years. But what does it look like for the 2025 tax season?

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This guide breaks down what parents need to know about the Child Tax Credit, including who qualifies, how much they might receive, and what’s changed compared to previous years. With the current year tax season running from January 27, 2025, to April 15, 2025, this credit applies to the 2024 tax year (covering income earned between January 1 and December 31, 2024).

What is the Child Tax Credit (CTC)?

Raising kids comes with plenty of expenses, from groceries and school supplies to childcare and medical bills. The CTC is designed to help families manage these costs by lowering the amount they owe in taxes—and, in some cases, putting extra money back in their pockets.

For the 2025 tax season (2024 tax year), eligible parents and caregivers can claim up to $2,000 per child under the age of 17 on their tax return. This credit directly reduces tax liability—meaning it lowers the amount owed to the IRS dollar-for-dollar. If the credit is larger than a filer’s total tax bill, part of it may be refundable, allowing families to receive money back.

A look back: How the Child Tax Credit has changed

The Child Tax Credit has been around since 1997, introduced as part of an effort to make raising children more affordable for working families. Originally, the credit was $400 per child, but over the years, it has grown significantly through various legislative updates.

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Some of the biggest changes came with temporary expansions, such as the American Rescue Plan Act of 2021, which briefly increased the credit to $3,600 per child under six and $3,000 per child ages six to 17, while also making it fully refundable. That expansion was a one-time adjustment, and the credit returned to its standard $2,000 per child in 2022.

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Though the CTC has evolved over time, its purpose remains the same: to provide financial relief to families and help cover the everyday costs of raising children. As such, knowing the credits and deductions that you are eligible for can pay off in big ways.

Who is eligible for the Child Tax Credit in 2025?

Tax season can be stressful, especially for families juggling everyday expenses. In fact, one statistic suggests that 35% of people don’t have enough money in their bank account to cover their taxes owed this season. That’s just one reason why the Child Tax Credit (CTC) can be so beneficial—it helps lower tax bills and, in some cases, puts money back in parents’ pockets.

But who qualifies? Not every dependent is eligible, so it’s important to understand the requirements before filing. Here’s what you need to know:

• Age Requirement: The child must be under 17 at the end of the tax year.
• Relationship Test: The child must be a biological child, adopted child, stepchild, foster child, sibling, or descendant (such as a grandchild, niece, or nephew).
• Residency Test: The child must have lived with the taxpayer for more than half the year.
• Financial Support Test: The child cannot have provided more than half of their own financial support during the year.
• Citizenship Requirement: The child must have a valid Social Security number to be eligible.

Meeting all of these criteria is necessary to claim the credit, so double-checking eligibility before filing can help families take full advantage of the tax benefit.

How to claim the Child Tax Credit in 2025

Whether you anticipate that you’ll owe money in taxes, will break even (the goal for many), or get a refund back, a tax credit of any kind can be quite valuable. But how do you claim the CTC? We’re so glad you asked. Here’s what to do.

Filing Requirements

To claim the Child Tax Credit, you must file a federal tax return, even if your income is low enough that you wouldn’t normally be required to file. The IRS won’t automatically apply the credit—you have to submit a return to receive it.

Where to Claim the Credit on Your Tax Forms

When filing your taxes:

1. Use IRS Form 1040: This is the standard federal tax return form.
2. Complete Schedule 8812: This form calculates your total Child Tax Credit and determines if any portion is refundable.
3. Enter the Credit Amount: The final amount will transfer to your Form 1040, reducing the tax you owe or increasing your refund.

Double-Check Social Security Numbers and Documentation

Accuracy matters when filing for the CTC. To avoid delays or rejections:

• Make sure every child claimed has a valid Social Security number, as the IRS will not approve the credit without one.
• Double-check names and birthdates to match IRS records.
• Keep records of residency and financial support, especially if custody or guardianship situations could raise questions.

Maximizing your tax benefits: Claiming the Child Tax Credit in 2025

The Child Tax Credit 2025 is a valuable way for parents and caregivers to lower their tax bill and potentially receive a refund. By understanding the eligibility rules, filing the correct forms, and double-checking documentation, you and your family can make the most of this opportunity. 

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With tax season in full swing, be sure to claim what you're entitled to—it could make a big difference in your financial situation. Need more details? The IRS website and tax professionals are great resources!

Need help filing? Credit Central’s tax preparation services can guide you through the process and help you maximize your return. Contact us today to get started!