A number of taxpayers have yet to submit their 2024 tax returns. As a result, they ought to be aware of every tax credit that the IRS provides for the 2025 tax year.
Just so you know, families in the United States who have one or more qualifying children can receive a tax break through the Child Tax Credit (CTC).
Remember that even if you are not required to file in 2025, you might still be eligible to receive the CTC.
Many people might be losing out on this helpful Child Tax Credit because they don’t typically file a tax return. The IRS can therefore assist you in determining whether you fulfill all the prerequisites for receiving such a sizable tax refund.
Keep in mind that you can claim the CTC for every child who qualifies. In order to work in the United States, they need to have a Social Security number that is currently valid.
The Child Tax Credit and the IRS
To qualify as a qualifying child for the 2024 tax year, your dependent needs to:
- At the end of the tax year, you must be younger than 17.
- Be your: son, daughter, stepchild, or qualified foster child, brother, sister, stepbrother, stepsister, half-sister, half-brother, or a descendant of one of them (such as a niece, nephew, or grandchild).
- not sustain themselves for more than half of the tax year.
- spent more than half of the tax year living with you.
- be listed on your return as a dependent.
- Do not submit a joint return for the year (unless you did so in order to receive a refund of taxes that were withheld or estimated taxes).
- Be a citizen, U.S. national, or an alien who resides in the United States.
- possess an SSN that is issued prior to the deadline for your tax return (including extensions) and is valid for employment.
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How much of the CTC can the IRS pay?
Each eligible child may receive up to $2,000 from the IRS. However, you must meet all eligibility requirements in order to receive the full amount of this IRS tax credit. In addition, you have to make the annual income thresholds.
Actually, for single filers, your annual income cannot exceed $200,000, and for joint filers, it cannot exceed $400,000.
The IRS advises that parents and guardians with higher incomes may be eligible for a partial Child Tax Credit, so it’s okay if you go over this limit a little.
For further information, go to the IRS official website if you believe you meet all the requirements set by the IRS and would like to apply for this tax credit: www.irs.gov/credits-deductions/individuals/child-tax-credit
