The IRS has just confirmed the dates to claim the long-awaited Child Tax Credit in 2025. This tax benefit is a breath of fresh air for millions of families looking to balance their expenses while raising their little ones. But who qualifies? How much can you receive?
In this article we are telling you everything you need to know to take advantage of this credit and ensure that you don’t leave money on the table. If you have children under 17, this information is for you. Get your wallet ready!
What is the Child Tax Credit?
A tax benefit designed to help families with minor children live more comfortably. This credit is intended to reduce the amount of taxes that parents pay to the IRS (so, you can save a little money if you qualify for this payment)
How does it work?
You can choose two options, through the reduction of taxes to pay, or a partial refund. In the first case, it’s easy, the benefit you are going to get is directly reduced from what you owe the IRS, for example, if you owe $5000 and they give you a credit of $1700 per child, your tax debt would be directly reduced to $3300
The second option, the partial refund, if the credit exceeds the amount of taxes you owe, you will receive the surplus through a refund.
When can I apply for my credit?
Well, now that the tax season begins (from January to April), you can request your credit corresponding to the 2025 tax year, however, it will arrive to you for the 2026 tax year. Let us explain it better: the child tax credit is claimed each year in the tax return of that year (which corresponds to the year that just ended), so, once you request it, it will be granted to you for the following year (in this case, they will make the tax reduction in the April 2026 tax year). The IRS confirms that the amount ($1,700 for each child) will not change for next year, so, don’t worry!
How do I know if I can receive the credit for my children?
- There are a number of criteria that must be met to qualify for this tax benefit:
- Age of the child: he or she must be under 17 years old at the end of the tax year (and have never worked)
- The child must be a son, stepchild, adopted child, brother, sister, or other descendant, such as grandchildren or nephews.
- He or she must have lived with the taxpayer for at least six months, except in specific exceptions.
- The child must be claimed as a dependent on the tax return and cannot file a joint return, except in specific cases.
- The taxpayer must have covered at least half of the child’s support expenses during the year.
- The child must be a citizen, national, or resident of the United States, with a valid Social Security number.
- The parents must meet the established economic limits, since it is a credit that is gradually reduced.
What should we know about this credit?
First, it is not refundable, but deductible, which means that it only applies to the amount of taxes you owe (unless you do not owe taxes as we have specified above)
Second, there will be approximately 48 million people who will benefit from this program
And finally, it will not change, the IRS has confirmed that any changes that may occur will be communicated through official means but that, for the moment, it will remain constant.
So, you know, request your credit on your tax return and save some money!