$3,600 Child Tax Credit Payments in 2025, What You Need to Know

The Child Tax Credit (CTC) is an essential financial support program for many American families, helping to offset the costs of raising children. In 2021, the American Rescue Plan Act temporarily increased the CTC to $3,600 for children under 6 years old and $3,000 for children aged 6 to 17. However, as we look to 2025, the credit is still set at $2,000 per qualifying child, with discussions continuing about potential increases. While no new legislation has been passed to raise the credit to $3,600 for the 2025 tax year, it’s important for families to understand the current CTC structure, who qualifies, and how to claim the credit. In this guide, we break down everything you need to know about the CTC in 2025 and what steps to take to make sure you receive the financial support available.

Understanding the Child Tax Credit in 2025

The Child Tax Credit provides essential financial assistance to families with children, helping to ease the burden of rising costs. For 2025, the CTC is worth $2,000 per qualifying child under the age of 17. While there is no new $3,600 child tax credit in effect for 2025, the $2,000 amount still offers significant relief to eligible families.

It is essential to stay informed about the Income Phase-Out thresholds and eligibility criteria to ensure you claim the credit correctly and receive the full benefit. The CTC is structured to provide up to $2,000 per child, with up to $1,700 of this amount being refundable for certain low-income families.

Key Eligibility Criteria for the Child Tax Credit in 2025

To qualify for the $2,000 Child Tax Credit in 2025, applicants must meet specific eligibility requirements. Below are the key factors that determine eligibility:

1. Age Test

The child must be under 17 years old at the end of the tax year (December 31, 2025). This is an age limit that must be met to qualify for the credit.

2. Relationship Test

The child must be the taxpayer’s son, daughter, stepchild, foster child, sibling, or a descendant of any of these (for example, a grandchild, niece, or nephew).

3. Support Test

The child must not have provided more than half of their own financial support during the tax year. This ensures that the credit is meant for those families who are primarily financially responsible for the child.

4. Dependent Test

The child must be claimed as a dependent on the taxpayer’s federal tax return. This test ensures that the person claiming the child tax credit is legally eligible to claim them as a dependent.

5. Citizenship Test

The child must be a U.S. citizen, U.S. national, or U.S. resident alien for the entire year.

6. Residency Test

The child must have lived with the taxpayer for more than half the year (exceptions apply for children of divorced or separated parents).

7. Income Test

The credit starts to phase out when a taxpayer’s Modified Adjusted Gross Income (MAGI) exceeds certain limits:

• $200,000 for single filers.
• $400,000 for married couples filing jointly.

If your income exceeds these thresholds, the credit is gradually reduced, potentially leading to a smaller benefit or none at all.

Potential Changes and Legislative Proposals for the Child Tax Credit

As of 2025, the Child Tax Credit remains at $2,000 per child. However, there have been ongoing discussions and proposals aimed at increasing the credit, particularly based on the 2021 American Rescue Plan expansion. This temporary increase provided up to $3,600 per child under 6 years old, and $3,000 for children aged 6 to 17.

Some lawmakers, including Vice President Kamala Harris, have proposed making the increased amounts permanent. Harris has suggested a $6,000 credit for families with infants and restoring the $3,600 for children under 6 years old. Some Republican lawmakers have also proposed raising the credit to $5,000 per child to better support working families.

While these proposals are under discussion, no new legislation has been passed to extend the increased amounts for the 2025 tax year. It’s essential to follow updates from the IRS and other official sources to stay informed about any potential changes.

How to Claim the Child Tax Credit in 2025

Claiming the $2,000 Child Tax Credit for 2025 is relatively straightforward. To ensure you receive the credit, follow these steps:

1. Determine Eligibility

First, ensure your child meets the age, relationship, support, and other eligibility requirements listed above.

2. Complete the Necessary Forms

When filing your 2025 federal income tax return (to be filed in 2026), you will need to complete Form 1040 and Schedule 8812 (Credits for Qualifying Children and Other Dependents). Schedule 8812 is necessary to calculate the credit and any refundable portion.

3. Calculate the Credit

Follow the worksheet provided in Schedule 8812 to calculate the amount of the credit you qualify for, based on your income and the number of qualifying children.

4. File Your Tax Return

Submit your completed tax return either electronically or by mail, ensuring all your information is accurate. Filing electronically typically speeds up the process and reduces the chances of errors.

5. Review Your IRS Notice

After submitting your return, you should receive a notice from the IRS confirming your credit. If any issues arise, the notice will outline how to address them.

For detailed guidance, visit the IRS Child Tax Credit page or consult a tax professional to ensure you receive your credit without delay.