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Child tax credit 2024-2025: how much does it cost and who is eligible

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Child tax credit 2024-2025: how much does it cost and who is eligible

Like clockwork, Americans across the country begin preparing to file their annual tax returns soon after welcoming in the new year.

In 2025, taxpayers will be able to start filing their 2024 taxes at the end of January and complete the reporting period by April 15.

Each year, Americans with taxable income complete their tax returns by submitting documents to the Internal Revenue Service. to show how much money they made in a year and how much tax they paid.

If you paid more throughout the year than you owe in taxes, you can get money back in the form of a tax refund. If you haven’t paid the required percentage of your taxable income throughout the year, you may owe the IRS money. in the form of a tax bill.

But the documents needed to calculate these payments can depend on many factors, including your tax bracket, tax deductibles and the number of eligible dependents.

For those claiming dependents, The child tax credit is a comprehensive policy for families that can help you save thousands of dollars.

What is the child tax credit and who is eligible for it

Child tax credits help families with eligible children receive tax relief, according to the IRS.

For fiscal year 2024, the maximum tax credit per eligible child is $2,000 for children under 17..

An eligible child must be your child, your stepchild, your adopted child, your brother, your sister, your brother-in-law or a descendant of one of them.

The child also must not be providing more than half of their own child support for the tax year and have lived with you for more than half the year.

To qualify, the child must also be a U.S. citizen, U.S. national, or alien residing in the United States with a valid employment Social Security number issued before your tax return due date.

The value of child tax credits decreases if your adjusted gross income exceeds $200,000 as an individual or $400,000 for a married filing jointly.