The Child Tax Credit (CTC) and Refundable Child Tax Credit (RCTC) bring financial relief to millions of American families. While the standard CTC reduces taxes owed, the RCTC offers refundable benefits, especially valuable for low-income families. Here’s everything you need to know about these benefits and the eligibility criteria.
Eligibility for Child Tax Credit
To qualify for the CTC, families must meet certain requirements, including the child’s age, residency, dependency status, and parental income limits. Children must be under 17, and the income cap for eligibility is $200,000 for single filers or $400,000 for joint filers.
Child Tax Credit vs. Refundable Child Tax Credit
The CTC is a non-refundable credit, which means it can reduce your tax liability to zero, but any remaining credit cannot be refunded. However, the RCTC allows eligible families to receive a portion as a refund. For the 2025 fiscal year, families can receive up to $1,700 of the $2,000 CTC as a refund.
Claiming Child Tax Credit for 2025
Eligible families can claim the CTC on their 2025 tax return. It’s advisable to check for updates on state-level child tax credits, which may be available in addition to the federal credits.
| Year | Credit Type | Max Credit Per Child | Refundable Portion | Income Limit (Single/Joint) |
|---|---|---|---|---|
| 2024 | CTC | $2,000 | Non-refundable | $200K / $400K |
| 2025 | RCTC | $2,000 | Up to $1,700 | $200K / $400K |
| 2025 | State CTC | Varies by state | Varies | Depends on state |
| 2025 | Federal CTC | $2,000 | Up to $1,700 | $200K / $400K |
The CTC provides crucial support for American families, with many states potentially offering additional child tax credits.
