Income Limits for the 2025 Child Tax Credit: How to Qualify for the $2,000 Rebate

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The Child Tax Credit (CTC) is a program that gives financial assistance to families with low incomes. Approximately 48 million households receive this support to help pay for expenses such as food, housing, and education for their children.

The CTC is available as a non-refundable tax payment for adults who have qualified dependents who are under the age of 17.

The Internal Revenue Service (IRS) announced a few weeks ago that the child tax credit for the fiscal year 2025, which will apply to taxes filed in April 2026, will have a maximum limit of $2,000, with a maximum refundable portion of $1,700. This non-refundable tax credit can reduce your tax bill dollar for dollar.

In 2025, the income ceiling for the Child Tax Credit will continue to be $400,000 for married couples who file jointly and $200,000 for all other taxpayers.

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What will the CTC requirements be in 2025?

The standard Child Tax Credit Worksheet, which is included in the instructions for Form 1040 or 1040-SR, can be used to claim the credit on the federal tax return.

A number of requirements must be met in order to be eligible, including the kid’s age, the relationship between the child and the applicant, and the applicant’s income.

Here are the requirements:

• A qualified child must have a Social Security Number that was issued by the Social Security Administration before the due date of your tax return (including extensions).
• At the end of the tax year, the qualifying child must be younger than 17 years old.
• Meet the connection and residency standards in order to have a consistent definition of a qualified child.
• Failing to provide more than half of their own assistance for the tax year.
• Have resided with you for more than half of the tax year, with exceptions for birth or death during the year, temporary absences, kidnapping or disappearance, or children of divorced or separated parents.

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• Be claimed as a dependent on your return.
• Do not file a combined return for the year, unless you are doing so simply to claim a refund of withheld or estimated taxes.
• You must be a U.S. citizen, a U.S. national, or a U.S. resident alien.
• Before the due date of your tax return (including extensions), you must have a Social Security Number that was issued by the Social Security Administration.

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