The Child Tax Credit (CTC) can significantly reduce the tax you owe—and, in some cases, increase your refund. Even if you typically don’t file a tax return, you may still be eligible to claim this valuable credit if you have qualifying children.
For the 2025 tax year, the Child Tax Credit (CTC) allows parents to claim up to $2,000 per qualifying child under age 17, with as much as $1,700 of that amount refundable. The credit begins to phase out at $200,000 for single filers and $400,000 for joint filers. This structure will remain in place through the end of 2025. However, without new legislation, the credit is set to be reduced significantly in 2026, dropping to $1,000 per child and removing inflation adjustments for the refundable portion, which would cause its value to decline gradually. These changes would mark a return to the pre-expansion rules that were temporarily modified under the Tax Cuts and Jobs Act (TCJA).
Who Is Eligible?
You can claim the Child Tax Credit for each child who meets the IRS requirements and has a Social Security number valid for employment in the U.S. For the 2025 tax year, your child must meet all the following conditions to qualify:
- Age: Must be under age 17 at the end of the tax year.
- Relationship: Can be your child (biological, stepchild, or adopted), a foster child placed by an agency, or a sibling (including step- or half-siblings) or their descendants, such as a grandchild, niece, or nephew.
- Support: Must not have provided more than half of their own financial support during the year.
- Residency: Must have lived with you for more than half of the tax year.
- Dependency: Must be listed as a dependent on your federal tax return.
- Filing status: Must not file a joint return with a spouse unless it’s only to claim a refund of withheld taxes or estimated tax payments.
- Citizenship: Must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Social Security Number: Must have a valid SSN issued by the tax filing deadline (including extensions).
How to Claim the Child Tax Credit
To claim the CTC, complete Form 1040 and attach Schedule 8812, which is used to calculate and report your credit for qualifying children and dependents. Be sure to include your child’s Social Security number and check all boxes that apply to your situation.
If the IRS Audits or Denies Your Claim
If you receive a letter from the IRS about your Child Tax Credit, read it carefully and respond promptly. If your claim is denied, you still have options. The IRS will provide steps you can take to resolve the issue or appeal the decision.
Additional Tax Credits You May Qualify For
If you’re eligible for the Child Tax Credit, you might also qualify for other family-related credits, including:
- Child and Dependent Care Credit – For costs related to the care of children under 13 or other dependents so you can work or look for work.
- Earned Income Tax Credit (EITC) – A refundable credit for low- to moderate-income working individuals and families.
- Adoption Credit and Adoption Assistance Programs – For qualifying adoption expenses.
- Education Credits – Such as the American Opportunity Credit or Lifetime Learning Credit for higher education expenses.
- Credit for Other Dependents (ODC) – For dependents who don’t meet the requirements for the CTC.
The Child Tax Credit provides financial assistance to families. Don’t miss out—check your eligibility, gather your documentation, and file your tax return to claim what you’re entitled to. Contact your Stephano Slack tax manager or partner at 610-687-1600 or TaxInfo@StephanoSlack.com to learn more.
Author Martha Eckhardt, EA, is a highly skilled Senior Tax Manager and Office Manager at Stephano Slack’s Haddonfield office. With a sharp focus on individual tax compliance, Martha excels in handling complex multi-state cases and serving high-net-worth clients. Her expertise includes managing trusts, preparing gift tax returns, and overseeing private foundations’ 990-PFs. Additionally, Martha brings specialized knowledge in Expat tax returns and associated Equalizations. For personalized tax solutions, reach her at 856-528-5386 or meckhardt@stephanoslack.com.
Disclaimer: This content is for informational purposes only and doesn’t constitute professional advice
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