In the United States, the IRS Offers a maximum of $2,000 tax credit to those who have dependent or qualifying children under 17. For the tax year 2024, IRS offered Child Tax Credit (CTC) amount of $2,000 for every qualifying child.
The CTC is nonrefundable, whereas the ACTC is partially refundable, meaning that if taxpayers don’t owe any income tax they can even get a part of it as a refund amount.
In 2025, taxpayers can also receive a maximum of $1,700 of child tax credit as a refundable amount. To claim this credit, individuals need to file their federal income tax return and clip up schedule 8812 (Credits for Qualifying Children and Other Dependents) with it.
IRS Offers Tax Credits $2,000
A tax credit is a specific amount that taxpayers can claim on their taxes return usually to alleviate their income tax. Qualifying taxpayers can utilize them to lessen their tax bill and raise their refund amount. Some tax credits are refundable.
It means that if an individual’s tax bill is inferior to the amount of a refundable credit, then they will be able to receive the difference back directly into their refund. But it is important to know that all the tax credits are not refundable. Nonrefundable tax credits means that when a taxpayer’s liability becomes zero, the taxpayer will not be able to receive any remaining amount as a refund.
The Child Tax Credit is a nonrefundable but partially refundable portion of this credit commonly known as an additional child tax credit that can provide a maximum of $1,700 in 2025 because of the Tax Cuts & Jobs Act (TCJA).
Who is eligible for IRS offered tax credits $2,000 in 2025?
The below listed individuals may be eligible for IRS offered tax credit $2,000 in 2025.
- Interested Candidates must be a resident of the United States.
- Claimants need to have one or more qualifying children (s).
- Qualifying children need to be at least 17 years old at the last of the tax year.
- The qualifying child needs to be a candidate’s son, daughter, stepbrother, stepsister, half-brother, half-sister, stepchild, qualifying foster child, brother, sister, a grandchild, niece, or a nephew.
- Interested child must not provide more than half of his/her support for the tax year.
- The eligible child needs to live with you for at least six months of the tax year.
- The child needs to be claimed as a dependent on your filed income tax return.
- The qualifying child does not need to file a joint return for the tax year (or if they filed a joint tax return it must be only to claim a refund of taxes withheld or predicted taxes).
- To qualify, a qualifying child needs to live in the United States as a permanent citizen or as a national or United States resident alien .
- The qualifying child needs to have a valid Social Security Number (SSN) for employment in the United States and must be issued before the tax return filing deadline (with extensions).
- Applicants’ yearly income limit need not be more than $200,000 or not need to be more than $400,000 if they will file a joint tax return in 2025.
How can you apply for IRS offered tax credits $2,000 in 2025?
Steps to apply for IRS offered tax credits $2,000 in 2025 are listed below.
- Navigate to the https://www.irs.gov/forms-pubs/about-form-1040 website.
- Locate and press the form 1040 (U.S. Individual Income Tax Return).
- Enter all the required details to file your tax return such as your name, address, phone number, email address, city, state, zip code, income limit, number of children, etc.
- Full out and then Clip up Schedule 8812 (Credits for Qualifying Children and Other Dependents) with your tax return form.
- Attach all the other necessary documents if needed.
- Verify all your entered details.
- Submit your tax return form with Schedule 8812 to the IRS.
How and When will you get your tax credits $2,000 in 2025?
The Child Tax Credit (CTC) payments for 2025 will be provided once you filed your 2024 tax return. If an individual files their tax return electronically and selects a direct deposit refund receiving method then they can expect to receive their CTC payment early then those who file through a paper form or select a physical cheques refund receiving method.
It is advised to you please file your tax return electronically or select a direct deposit refund receiving method to get the CTC payment on time. To receive the CTC payment amount timely individuals need to submit their tax refund before the tax return filing deadline of 15 April, 2025 for the tax year 2024 (for which taxpayer’s can submit their tax return in 2025).