Raising children in America is already a challenging task – education, health, food needs, and many other responsibilities. In such a situation, the Child Tax Credit (CTC) provided by the government brings relief to millions of families in America. Some important changes have been made in this scheme in the year 2025, which has increased the amount received under it and the eligibility rules have also been made somewhat easier.
In this article, we will tell you how much the child tax credit has increased in 2025, which families will get its benefit, and when it will be paid. Let us understand this scheme in detail:
What is Child Tax Credit (CTC)?
The Child Tax Credit is a federal tax benefit, which is given to families who have children 17 years of age or younger. Its purpose is to provide financial assistance to families in raising children.
This tax credit is adjusted directly in the income tax return, that is, it reduces your tax burden. If your tax liability is less, then you can get this amount directly as a refund.
What has changed in 2025? (Increased amount)
The amount of child tax credit has been increased to 3,600 dollars in the year 2025 as opposed to 2,000 dollars. It is however, subject to age of the child as well as to the annual income of the family.
| Child’s Age | 2025 Updated CTC Amount |
|---|---|
| 0 to 5 years | $3,600 per child |
| 6 to 17 years | $3,000 per child |
A similar increased amount was given temporarily in the year 2021, but this increase in 2025 is expected to be permanent. This has been done in view of inflation and cost of living.
Who are eligible? (Eligibility Criteria)
To receive the Child Tax Credit the following must be the case:
- Age of child: The child must be below 17 years on or before the 31 December 2025.
- Social Security Number (SSN): The child must have a valid Social Security Number.
- Relationship Status: The child can be your biological or adopted son/daughter, stepchild, foster child or even a sibling, provided he/she lives with you year-round.
- Income Limit: Income limit for single parents: Up to $112,500.
For parents filing jointly: Up to $150,000.
The tax credit starts getting reduced on income above this.
What will be the timing of the receipt of payment? Schedule of Payments 2025 ( Schedule of Payments 2025 )
By 2025, it is possible to pay the child tax credit in two instalments:
- Advance Payment: Advance payment of monthly payment is possible which will be made by the government starting July 2025 to December 2025.
- This is the payment that the IRS (Internal Revenue Service) shall make in form of a direct debit or a check.
- The remaining amount will be paid in the following tax return (in 2026) when it will be necessary to file the taxes.
Possible payment date (by month):
- 15 July 2025 The pieces were extracted prematurely (in the trash), and it turned out that the mind of the man did not exist.
- 15 th September 2025 The with the planned was not to be concert date was October 15, 2025.
- Advance II November 2025
- December 15th, 2025
Can one get the full amount of this credit refunded?
Essentially, as the new suggestion on the Child Tax Credit that should be implemented in 2025 suggests, it will be Fully Refundable. This implies that you can get the full amount of this credit even though this may result to low income that does not pay tax.
This change brings special relief to poor and low-income families.
How to claim Child Tax Credit?
You must bring back your income tax form (Form 1040) as usual in order to avail the advantage of CTC. In addition, prepare the following documents:
- Child’s SSN
- Your filing status (eg – married, single, head of household)
- Documents of your annual income (W-2, 1099, etc.)
- Bank details (for Direct Deposit)
- You can also check your credit status by visiting the IRS portal.
Do you have to apply for CTC?
Families who have filed taxes in previous years will not need to apply separately for this credit. The IRS will check their eligibility and start making payments on its own.
But families whose income is very low and have not paid taxes will have to provide their information using the “Non-filer Sign-up Tool”.
CTC and other benefits: Double benefit?
Yes, apart from the child tax credit, you can also avail benefits from these schemes:
- Earned Income Tax Credit (EITC)
- Supplemental Nutrition Assistance Program (SNAP)
- Housing Assistance
- Taking advantage of CTC does not affect these programs.
What will be the benefit of increasing the child tax credit?
- It will help families to spend more on children’s education and healthcare.
- Low-income families will get financial support.
- It will help in reducing the poverty rate of children.
- Child development and school performance will improve in America.
Conclusion
Absolutely! If you have children below 17 years of age in your house and your income is within the prescribed limit, then this scheme can prove to be a boon for you. With the increased amount and refundable facility in 2025, this benefit has become even more effective. If you have never taken this credit before, then definitely claim it this time. This will not only reduce your tax burden but will also be a strong step towards a better future for your children.
FAQs
1. What is the Child Tax Credit (CTC)?
The Child Tax Credit is a federal tax benefit provided to eligible American families to help reduce their income tax liability and support the cost of raising children.
2. Has the Child Tax Credit increased in 2025?
Yes, in 2025 the Child Tax Credit amount has been increased as part of new legislation aimed at supporting families with inflation and rising child-rearing costs.
3. What is the updated amount of the Child Tax Credit in 2025?
The updated credit amount in 2025 is up to $2,000–$3,600 per child, depending on the child’s age and the family’s income level (exact figures may vary by new IRS guidance or pending legislation).
4. Will the Child Tax Credit be fully refundable in 2025?
Yes, as per the 2025 proposal, a portion or the full amount of the Child Tax Credit may be refundable, meaning eligible families can receive it as a tax refund even if they owe no taxes.
5. When will families receive the Child Tax Credit payments in 2025?
The credit is typically received when you file your tax return in early 2026. However, if advance monthly payments return (as in 2021), eligible families may begin receiving partial monthly payments starting mid-2025.
