Posted At: May 03, 2025 - 892 Views
✅ What Is the Child Tax Credit?
The Child Tax Credit is a non-refundable or partially refundable credit offered by the IRS to help parents and guardians offset the cost of raising children. Depending on your income and filing status, you could receive up to $2,000 per qualifying child under current federal law.
👶 Who Qualifies for the Child Tax Credit?
To claim the CTC for each child, the following 7 criteria must be met:
- Age: The child must be under 17 years old at the end of the tax year.
- Relationship: The child must be your son, daughter, stepchild, foster child, sibling, or descendant (e.g., grandchild, niece).
- Dependent Status: The child must be claimed as a dependent on your tax return.
- Residency: The child must have lived with you for more than half the year.
- Support: The child must not have provided more than half of their own support.
- Citizenship: The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.
- Filing Status: You must file as Single, Head of Household, Married Filing Jointly, etc. Married couples filing separately may have limited eligibility.
💰 How Much Can You Claim in 2025?
For Tax Year 2025, the standard Child Tax Credit includes:
- Up to $2,000 per qualifying child
- Of that, up to $1,600 may be refundable through the Additional Child Tax Credit (ACTC)
- The credit phases out at higher income levels
| Filing Status | Phaseout Begins At |
|---|---|
| Married Filing Jointly | $400,000 |
| All Other Filers | $200,000 |
If your income exceeds these thresholds, your credit reduces by $50 for every $1,000 over the limit.
📥 How Do You Claim the Credit?
You claim the Child Tax Credit by completing Schedule 8812 and attaching it to your Form 1040 during tax filing. Make sure you have:
- Your child’s Social Security Number
- Proof of residency and relationship
- Accurate income documentation
🔁 What Changed from the Previous Year?
There have been no major increases like those temporarily offered during the COVID-19 pandemic under the American Rescue Plan. The enhanced CTC (up to $3,600) ended in 2021, and the 2025 credit reverts to the pre-pandemic structure unless new legislation is passed.
⚠️ Common Mistakes to Avoid
- Claiming a child without a valid SSN
- Filing jointly with income over the phaseout limits
- Misreporting support or residency
- Missing the Additional Child Tax Credit for partial refunds
📞 Need Help Claiming Your Credit?
At Hana Tax, we specialize in helping families maximize their tax credits and avoid IRS errors. Whether you’re filing for the first time or managing multiple dependents, we’re here to simplify the process.
👉 Schedule a Free Consultation Today