Many people across the United States are puzzled by the question, “Can we expect the Child Tax Credit of $3,600 and $3,000 to be reintroduced in 2025?”
This issue is currently one of the most talked about in the United States, especially now as we are in tax season. The chatter began when different online sources suggested that the expanded Child Tax Credit (CTC) might be available again this year. But is this really the case? We did some thorough checking, and this is everything you need to know.
What Did the Enhanced Child Tax Credit Entail?
In 2021, amidst the COVID-19 pandemic, the U.S. Congress passed the American Rescue Plan. This act briefly raised the Child Tax Credit to:
- $3,600 for each child under the age of 6
- $3,000 for each child aged 6 to 17
Moreover, families were given a part of this credit in the form of monthly payments between July and December 2021. It was a vital resource for millions of parents who were going through financial difficulties to buy the essentials such as groceries, paying rent, and getting school supplies.
Nevertheless, such an increase was only for a specific period. It was relevant to the tax year of 2021 and the effect stopped in 2022.
What are the the Current Child Tax Credit for 2024 Taxes?
The original Child Tax Credit has reverted to its pre-pandemic level by this time(April 2025). However, it is still a standard Child Tax Credit, and it has not been affected by a pandemic in that it can be described as:
- An amount of $2,000 for every child under 17 years of age
- Out of the mentioned amount, lower- and middle-income families can receive as much as $1,700 as a refund.
This means that you can expect your deduction, even if you have no tax liability. The value of the refund differs, based on your earnings, children’s ages, and your tax filing status.
Can We Look Forward to the $3,600 and $3,000 Relinquished Credits Back in 2025?
As of today, a new law has not been passed to reinstate the 2021 levels of the Child Tax Credit.
Surely some of the representatives of Congress—mainly the Democrats—have strongly supported the idea of recovering the higher payments. Their justification was that the extended credit decreased the number of children living in poverty and at the same time assisted the parents to survive. However, the Republicans have objectioned to the costs and the influence on the national budget in the long run.
No information has been released to confirm the 2025 tax year increase. Should new legislation not be passed, the credit will sustain at $2,000 per child.
In other words, it is possible that the Child Tax Credit will only go down to $1,000 per child by 2026 in the absence of action on Congress that year.
Who is Entitled to the Present Credit?
In order to be eligible for the current Child Tax Credit:
- Your child must be under 17 years of age at the end of the year.
- He/she must live with you for six months out of twelve.
- You are filing for them as a dependent.
- They have a Social Security number.
Moreover, there is a restriction on income:
- For single filers, the income limit is $200,000.
- As for married couples filing jointly, the income limit is $400,000.
People whose income exceeds these amounts will have the amount of the credit reduced.
How to Receive the Child Tax Credit
You can take the credit by submitting IRS Form 1040 along with attaching Schedule 8812. It is faster the electronic way and the use of direct deposit can provide you the refund early.
As per IRS, this year’s average refund is around $3,221 counting the Child Tax Credit for most families who received it.
Can the Child Tax Credit of $3,600 and $3,000 be reinstated in 2025?
At present, the answer is in the negative, although this is a fluid situation. There is a possibility that families will have to watch for the news. Any new update would require action from the Congress. In the meantime, the $2,000 credit is still in effect.
False online claims or rumors must be avoided. Rely on official sources like the IRS website or a well-informed tax professional for the correct information. It is always good to clear your doubts by checking.
We will keep an eye on the latest developments in this story and will update you as soon as there is any news.
