The Child Tax Credit helps about 48 million low-income families support their children. To be eligible, parents must have qualifying children under the age of 17 and the family must have a low income.
The IRS says that the Child Tax Credit for the tax year 2025 will be $1,700. This credit is usually claimed on tax returns in 2026. Some people want to talk about this issue during the 2025 tax debate, though, so that lawmakers can change the tax code.
The Center on Budget and Policy Priorities says that the American Rescue Plan Child Tax Credit should be expanded again in 2021. This would raise the credit to $3,600 for kids under 5 and $3,000 for kids 6 to 17.
If the Child Tax Credit from the 2021 Rescue Plan had been in place, about 2.6 million fewer kids would live in families with incomes below the poverty line.
The expansion of the Additional Child Tax Credit was a campaign issue
During their campaigns, both candidates for president talked about increasing the Child Tax Credit. Vice President Kamala Harris was thinking about bringing back the program that was part of the American Rescue Plan 2021.
Many young people I have met really want to be good parents to their kids, but they do not always have the tools they need to do so.
“That is why I will fight for a child tax credit so they can save some money,” Kamala Harris said. Since she lost the election, she will not be able to carry out her promise.
The credit was also talked about by Donald Trump and Sen. JD Vance, who was his running mate. This means that it could be brought up again at some point.
Who is eligible for the Additional Child Tax Credit?
To be eligible, you must meet a number of conditions, such as having a certain amount of income and having a child of a certain age.
You can claim the ACTC (Additional Child Tax Credit) on your federal tax return. There is a standard Child Tax Credit Worksheet that you need to fill out first. It is in the instructions for Form 1040. You need to fill out Schedule 8812 if you are eligible for the extra claim.
With the Additional Child Tax Credit, your tax bill can go away completely, and you can get back up to $1,600 of the $2,000 for each qualifying child in 2024 and 2025. Here is what the IRS says about what you need to do to apply for it:
- A qualifying child must have a Social Security number issued by the Social Security Administration before the due date of your tax return (including extensions).
- The Additional Child Tax Credit begins to phase out if your adjusted gross income exceeds $200,000 ($400,000 for married couples filing jointly).
- The ACTC is not allowed if you or your spouse (if filing a joint return) file Form 2555 or Form 2555EZ (excluding foreign earned income).
