Yes, claiming the Additional Child Tax Credit (ACTC) or Earned Income Tax Credit (EITC) can delay your tax refund. Under the PATH Act, the IRS is required to hold these refunds until at least mid-February to verify accuracy and prevent fraud, even if you file early.
The standard Child Tax Credit is non-refundable, but the Additional Child Tax Credit is refundable, allowing for up to a $1,700 refund for the 2025 tax year even if you don't owe any tax. To fight against fraud, the IRS can delay the processing of refunds that include the Child Tax Credit.
The Child Tax Credit is a federal support program for Americans who are raising kids. Claiming the credit lowers your tax bill by up to $2,000 per qualifying child under age 17 who is under your care. So if you owe $2,000 in federal income tax and qualify for a credit worth $2,000, your tax bill could be wiped out.
Child Tax Credit 2025 payments
In the 2025 tax year, the CTC will not be paid out in the form of payments. Instead, it's a tax benefit that can provide families with up to $2,200 in tax relief per qualifying child. If your tax is already $0, you could get up to $1,700 per qualifying child as a refund.
Tax credits are amounts you subtract from your bottom-line tax due when you file your tax return. Most tax credits can reduce your tax only until it reaches $0. Refundable credits go beyond that to give you any remaining credit as a refund. That's why it's best to file taxes even if you don't have to.
Examples that could decrease your refund include: Math errors or mistakes; Delinquent federal taxes; State income taxes, child support, student loans or other delinquent federal nontax obligations; and.
A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe. For example, if you owe $1,000 in federal income taxes but qualify for a tax credit of $500, you will only owe $500 after applying the credit.
Your child tax credit is likely $500 instead of $2,000 because they either turned 17 during the tax year, making them eligible for the Other Dependent Credit, or you might have mistakenly checked a box in your tax software, like saying their SSN isn't valid for employment or that they paid over half their own support, which triggers the lower credit amount, according to TurboTax support, TurboTax support, TurboTax support, and TurboTax support https://ttlc.intuit.index.php/community/taxes/discussion/my-daughter-is-17-but-is-still-jr-in-high-school-why-do-i-only-get-500-for-her-and-not-the-full-2000/00/3423950.
For the federal Child Tax Credit (CTC), the full amount starts phasing out when Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers and $400,000 for married couples filing jointly, with the credit reduced by $50 for every $1,000 over these thresholds, though some states offer separate CTCs with different income limits. To claim the federal CTC, you generally need a qualifying child with a Social Security Number and must meet other dependency rules, and you may get a partial credit even with higher income.
Lower-income taxpayers are eligible to receive a credit of up to $1,700 per child, although they may receive less depending on their earned income. In contrast, higher-income taxpayers, with sufficient income tax liability, are eligible for up to a $2,000 credit per child.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.
Income Limits
You must report at least $2,500 worth of earned income. Income thresholds are: Single and Head of Household filers - $200,000. Married filing joint filers - $400,000.
The nonrefundable Child Tax Credit will lower your tax liability down to $0. So you must have a tax liability in order to claim it. If you did not have at least a $4,000 tax liability, you would not be eligible for the entire credit, but you could be eligible for the Additional Child Tax Credit.
You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.
The One Big Beautiful Bill Act (OBBBA) made the Tax Cuts and Jobs Act (TCJA) changes permanent, increased the maximum CTC amount from $2,000 per child to $2,200 per child beginning in 2025, and adjusted the maximum credit for inflation beginning in 2026.
The $3,600 Child Tax Credit (CTC) was a temporary expansion for the 2021 tax year only, under the American Rescue Plan, for children under age 6, with $3,000 for ages 6-17, and was fully refundable, allowing low-income families to get the full benefit even with no income, requiring a valid SSN for both parents and kids. For current tax years (like 2025), the credit reverts to the pre-2021 rules (up to $2,000 per child, partially refundable) unless Congress acts, but you still need an SSN and must meet income and relationship tests, even if low-income families can get a portion.
Yes, you might be able to claim your 25-year-old son as a dependent if he meets the "qualifying relative" tests (under $5,050 gross income, you provide over half his support, lives with you, etc.) or if he's permanently and totally disabled, but not as a "qualifying child" due to age unless he's a student under 24 and younger than you, which at 25 he likely won't meet. The main path for a 25-year-old is the Qualifying Relative rules, focusing on his income and your financial support.
Even if you are not otherwise required to file a tax return, you may still be entitled to an economic stimulus payment from the federal government. WHAT YOU COULD GET: You could receive a payment of $300 for individuals or $600 if you are married and file a joint tax return with your spouse.
Some tax credits are refundable. If a taxpayer's tax bill is less than the amount of a refundable credit, they can get the difference back in their refund. Some taxpayers who aren't required to file may still want to do so to claim refundable tax credits. Not all tax credits are refundable, however.