The Internal Revenue Service has raised the additional child tax credit for the 2024 tax year, increasing the maximum credit amount for families preparing their tax returns. These adjustments are designed to lower income tax bills and provide larger refunds for millions of eligible taxpayers as the April 15, 2025, due date approaches.
The child tax credit now provides up to $1,700 per qualifying child, compared with the previous maximum of $1,400. This expanded amount applies under the additional child tax credit, which allows families to receive a refundable credit even if they do not owe taxes. According to the IRS, the change delivers a more meaningful tax break by putting extra money back into the pockets of households that meet the eligibility criteria.
To qualify for the child tax credit in the 2024 tax year, a dependent must meet several conditions established by the IRS. The child must be under age 17 at the end of the year and have a valid Social Security number issued for employment purposes. In addition, the child must be a U.S. citizen, national, or resident alien to be considered eligible.
The IRS also requires that the child live with the taxpayer for more than half of the year. However, temporary absences for reasons such as education, medical care, or military service may still count toward eligibility. Qualifying relationships include one's child, foster child, or adopted child. An adopted child includes any child lawfully placed with the taxpayer for legal adoption, even if it has not yet been finalized.
The amount a family can claim under the child tax credit depends on their income and filing status. Married couples filing jointly may qualify for the maximum credit if their combined income is $400,000 or less. Single filers and heads of household may qualify for the maximum amount if their income is $200,000 or less.
Households with higher earnings may still qualify for a partial credit, which can reduce the amount of income tax they owe. According to the IRS, this phaseout ensures that the benefits of the credit are directed primarily toward low- and middle-income taxpayers.
The IRS allows taxpayers to claim a credit for other dependents in addition to children who meet the standard requirements. This provision covers individuals who do not qualify as children for the purposes of the child tax credit but still rely on the taxpayer for support.
Eligible dependents may include a full-time student over the age of 17, an elderly parent, or another qualifying relative. To qualify, the dependent must be a U.S. citizen, national, or resident alien and must meet the relationship and support tests outlined in IRS rules.
The credit for other dependents provides up to $500 per eligible person. While this amount is not refundable, it can still reduce a taxpayer’s overall income tax liability and lower the amount they owe.
To claim the child tax credit or the credit for other dependents, taxpayers must file Form 1040 and attach Schedule 8812. This schedule calculates the credit amount based on the number of qualifying children, other dependents, and income level.
The IRS has stated that it cannot issue refunds for certain credits, including the additional child tax credit, before mid-February 2025. This delay applies to the entire refund, not just the refundable portion. The rule allows the IRS to detect fraud and verify eligibility before releasing payments.
Taxpayers are encouraged to submit accurate forms early. Those who qualify may use IRS Free File or the Direct File program. At the same time, free assistance is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.
The IRS updates to the child tax credit may affect income tax outcomes for millions of households. Families filing joint or individual returns may see reduced tax bills or larger refunds depending on their income and number of dependents.
Taxpayers should review eligibility requirements carefully, confirm that each qualifying child has a valid Social Security number, and ensure that forms are filed before the April 15, 2025, due date. Households with higher earnings may still benefit from partial credits, while those with lower or no tax liability could receive refunds through the additional child tax credit.
The IRS recommends that eligible taxpayers use its online tools and free filing resources. Families can claim the maximum benefits available under current law by preparing early and filing accurately.
By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now
Schedule your confidential tax relief review today
Copyright © 2025 Get Tax Relief Now
