Child Tax Credit 2024: What’s the Maximum Income to Qualify?

The Child Tax Credit (CTC) continues to play a vital role in aiding low-income families, helping them cover essential expenses such as food, housing, and education for their children. This financial assistance benefits approximately 48 million families in the United States.

Supporting Families Nationwide

The CTC is available to adults with qualifying dependents under the age of 17 and is offered as a non-refundable tax credit, reducing the recipient’s tax bill dollar for dollar.

For the fiscal year 2025, the Internal Revenue Service (IRS) has set the maximum CTC at $2,000, with up to $1,700 being refundable. This amount will apply to tax filings submitted in April 2026. The income thresholds remain unchanged with a cap of $400,000 for married couples filing jointly and $200,000 for all other filers.

Eligibility Requirements for the 2025 CTC

To qualify for the CTC in 2025, families must meet specific criteria outlined by the IRS. These include age, relationship, and residency conditions for the dependent child, as well as income thresholds for the applicant. Below are the key requirements:

• Child’s Social Security Number: The qualifying child must have a Social Security Number issued by the Social Security Administration before the tax return deadline, including extensions.
• Age Requirement: The child must be under the age of 17 at the end of the tax year.
• Relationship Test: The child must be related to the taxpayer, such as a son, daughter, stepchild, sibling, or foster child.
• Residency Test: The child must have lived with the taxpayer for more than half of the tax year, with exceptions for temporary absences, birth or death, kidnapping, or parental separation.
• Support Test: The child must not provide more than half of their financial support during the tax year.
• Dependent Status: The child must be claimed as a dependent on the taxpayer’s return and must not file a joint tax return unless solely to claim a refund.
• Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.

Applicants must complete the standard Child Tax Credit Worksheet, available in the instructions for Form 1040 or 1040-SR, to claim the credit on their federal tax return.

A Steady Financial Resource

The CTC remains a crucial source of financial relief for millions of families across the country. By providing consistent support, it allows parents to better manage the rising costs of raising children. Families who meet the eligibility criteria should ensure they complete the necessary forms accurately and submit them on time to benefit from this essential program.

With its unchanged income limits and straightforward requirements, the 2025 Child Tax Credit continues to offer valuable assistance to those who need it most, promoting economic stability and support for families nationwide.